Cryptocurrency

Ripple vs SEC Case as of August 8, 2024: XRP Skyrockets After New Ruling

In a landmark decision, U.S. District Judge Analisa Torres has ordered Ripple Labs Inc. to pay $125 million in civil penalties to settle a long-standing dispute with the U.S. Securities and Exchange Commission (SEC).

The ruling, issued on the 7th of August, concludes a nearly three-year legal battle that centered on whether Ripple’s XRP digital asset constituted an unregistered security.

The SEC initially sought $2 billion in penalties, alleging that Ripple conducted an unregistered securities offering through the sales of XRP. However, the court ultimately determined that while Ripple’s actions did violate securities laws, the level of culpability did not warrant the agency’s requested penalty amount.

The court found that Ripple’s “recurrent” and “highly lucrative” violations of federal securities laws constituted a “serious offense.” However, the judge emphasized that the case lacked allegations of fraud or misappropriation, factors that could have significantly increased the penalty. Additionally, the SEC failed to demonstrate that Ripple caused substantial investor losses through its institutional XRP sales.

Ripple’s Penalty Payment Date

According to the court’s ruling, the $125 million penalty must be paid within 30 days of the final judgment. Ripple has the option to transfer the funds electronically from a bank account or via certified check. The SEC will hold the funds, including any accrued interest until it receives court approval for distribution.

The Ripple-SEC settlement marks a pivotal moment for the cryptocurrency industry, providing much-needed clarity on the regulatory landscape, while underscoring the complexities of classifying digital assets. Although the $125 million penalty is substantial, it could have been far worse for Ripple.

Impact of Ruling on XRP Price

The final ruling has had a positive impact on the XRP price, as it removes a significant overhang of legal risk. In the last 24 hours, XRP’s price has appreciated by 20.57%, currently trading at $0.613.

However, the broader cryptocurrency market may experience volatility as investors digest the implications of the ruling.

In a post on X, Ripple CEO Brad Garlinghouse expressed satisfaction with the court’s decision, calling it a win for Ripple, the crypto industry, and the legal system. He believes the SEC’s opposition to the XRP community has ended.

Looking ahead, the crypto industry will continue to grapple with regulatory challenges, and policymakers will need to strike a balance between investor protection and fostering innovation.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.


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Solomon Odunayo

Solomon is a trader, crypto enthusiast, and analyst with over four years of experience in the industry. He strongly believes that crypto assets and the blockchain will continue to gain prominence. At TimesTabloid.com, he focuses on news, articles with deep analysis of blockchain projects, and technical analysis of crypto trading pairs.

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