After a prolonged legal battle, Ripple has been slapped with a $125 million fine by the US Securities and Exchange Commission (SEC) in a lawsuit that spanned four years. The District Court of the Southern District of New York, presided over by District Judge Analisa Torres, issued the final judgment, partially rejecting the SEC’s claim for over $2 billion in compensation. The court found that Ripple violated securities laws by selling XRP as an unregistered security, leading to the imposition of a civil penalty.
Following the announcement of the court ruling, XRP’s price saw a significant 18% surge within minutes. As per CryptoSlate data, XRP was trading at $0.61 at the time of the news release. This price movement indicates a favorable response from the market towards the resolution of the legal dispute, bringing relief to Ripple and its investors.
The court’s decision was based on a thorough review of Ripple’s XRP sales practices. While the institutional sales were deemed to have violated securities laws by constituting investment contracts, the programmatic sales and other distributions were not classified as securities sales. The court’s evaluation highlighted a limited number of transactions, specifically 1,278, that were found to breach Section 5 of the Securities Act of 1933.
At the time of the court ruling, XRP held the 7th position based on market capitalization, with a notable 19.63% price increase in the previous 24 hours. With a market capitalization of $34.13 billion and a trading volume of $2.84 billion, XRP’s performance remained robust amidst the legal uncertainties. The overall crypto market was valued at $1.94 trillion, with Bitcoin dominance standing at 55.94%, signaling a broader market resilience.
The conclusion of the SEC lawsuit against Ripple with a $125 million fine marks the end of a prolonged legal battle that had implications for the crypto industry at large. The court’s ruling provides clarity on the classification of XRP sales and sets a precedent for future regulatory standards. Moving forward, Ripple and the broader crypto market will navigate the implications of this judgment while continuing to evolve in a dynamic regulatory landscape.