Ripple, the blockchain technology firm behind XRP, recently achieved a major victory in its long-standing legal battle with the U.S. Securities and Exchange Commission (SEC).
The court issued a final judgment in the case, imposing a $125 million civil penalty on Ripple for its previous institutional XRP sales which the court determined to be securities offerings in July 2023.
Despite the financial penalty, the majority of the XRP community, including Ripple CEO Brad Garlinghouse, have characterized the outcome as a significant win for the company and the broader cryptocurrency industry.
Garlinghouse asserted that the court’s decision marks the end of the SEC’s adversarial stance towards XRP holders. Following the ruling, XRP jumped by over 20%, reclaiming the $0.6 level it lost after a recent decline.
The SEC Loses Again
The SEC had initially sought a substantial $1.95 billion penalty for Ripple’s violation of securities laws through XRP sales to institutions. Ripple countered this argument, proposing a $10 million penalty instead. The SEC argued that such a hefty fine would deter future misconduct and compensate for the harm caused to investors.
However, the court determined that while Ripple had violated securities laws, the allegations of fraud or misappropriation were unfounded. Consequently, the judge opted for a significantly lower penalty. Although she acknowledged that securities law violation was a serious offense, the company was not charged with fraud or intentional wrongdoing.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Industry Experts and Ripple Executives React
James Seyffart, a crypto expert and prominent voice in the community, interpreted the ruling as a net positive for Ripple. Seyffart noted that although the SEC may see the $125 million penalty as a win because it is much higher than Ripple’s proposed $10 million, the ruling ultimately represents a win for Ripple.
Ripple co-founder Chris Larsen celebrated the court’s decision, writing, “The SEC’s unhinged campaign against us is finally over. Let’s all hope this ends this Administration’s war on crypto.
Stuart Alderoty, the company’s Chief Legal Officer (CLO) weighed in, expressing the company’s acceptance of the fine, specifically about the historical institutional XRP sales. Ripple is now obligated to pay the imposed penalty within 30 days.
The implications of this case for the cryptocurrency industry are far-reaching. The court’s decision provides some clarity on the regulatory landscape for digital assets and sets XRP apart as a digital asset with full legal clarity and freedom from legal trouble.
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.
Follow us on Twitter, Facebook, Telegram, and Google News
