Victory for Ripple: XRP Soars
A federal court has ordered Ripple to pay $125 million in civil penalties, ending the SEC case against Ripple. Judge Analisa Torres ruled that Ripple’s direct sales of XRP to institutional clients breached securities regulations, resulting in a $125.035 million penalty.
The decision follows Judge Torres’ July 2023 verdict that Ripple’s direct sales of XRP to institutional clients violated federal securities laws. Although she found no violations in Ripple’s programmatic sales to retail clients via exchanges.
The SEC will likely appeal the decision, but the injunction against future violations indicates a judicial caution towards Ripple’s potential to “cross the line” with its on-demand liquidity offerings.
Ripple is required to file a registration statement for any future securities sales. Judge Torres emphasized the possibility of future violations justifying the injunction, stating a “reasonable probability” that Ripple might again breach securities laws.
Ripple CEO Brad Garlinghouse commented on X following the ruling: “The SEC asked for $2B, and the Court reduced their demand by ~94% recognizing that they had overplayed their hand. We respect the Court’s decision and have clarity to continue growing our company.”
Crypto lawyer Fred Rispoli wrote on X: “Overall, HUGE win for Ripple. Although I’m surprised at the $125M hit, Ripple more than made that just on the price move in $XRP in the last 5 minutes.”
Bloomberg analyst James Seyffart wrote on x: “I’m sure the SEC will refer to this as a win for getting a $125 million penalty. But that’s really a win for Ripple as far as I’m concerned. And an L for the SEC’s ‘regulation via enforcement’ stance.”
Following the judgement, XRP’s price saw an immediate jump of 20%.
Source: https://bravenewcoin.com/insights/victory-for-ripple-xrp-soars