- Ripple’s decisive victory over the SEC has officially ruled XRP a non-security.
- Judge Torres reduced the SEC’s demanded fine from $2 billion to $125 million.
Ripple has exciting news following its recent victory over the US Securities and Exchange Commission (SEC). XRP has been officially classified as a non-security, a designation that was highly disputed during Ripple’s litigation against the Commission.
Court Significantly Reduces SEC Penalties for Ripple’s Institutional XRP Sales
In addition, as Ripple CEO Brad Garlinghouse noted in his most recent tweet, the court has reduced the SEC’s penalties for institutional XRP sales that violate federal securities laws.
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.
This is a victory for Ripple, the industry and the rule of law. The SEC’s…
— Brad Garlinghouse (@bgarlinghouse) August 7, 2024
The initial demand for $2 billion has been reduced to $125 million, recognizing that the SEC has overplayed its hand. He added:
“This is a victory for Ripple, the industry and the rule of law. The SEC’s headwinds against the whole of the XRP community are gone.”
Judge Torres of the Southern District of New York levied the penalties after concluding that Ripple’s 1,278 institutional sales transactions breached securities regulations.
Previously, Judge Torres decided in July 2023 that Ripple violated federal securities laws by selling XRP directly to institutional clients. However, automated sales of XRP to retail clients through exchanges did not violate securities regulations.
Recently, the SEC failed to appeal a portion of the order that excused Ripple from securities law violations in programmatic sales.
Furthermore, Judge Torres has forbidden Ripple from future violations of federal securities laws, signaling that any violations will necessitate the issue of a court order. Ripple must file a registration statement if it intends to sell securities in the future.
Interestingly, Ripple’s convincing triumph has generated a surge in demand for XRP. At the time of writing, XRP was up 17.88% over the last 24 hours to $0.6055. Its daily trade volume has risen more than 200% to $5.05 billion. The price of XRP has quickly risen to pass crucial levels, $0.50 and $0.60.
Indeed, as we previously noted, demand for XRP has increased since the partial triumph in July 2023. And as the current court verdict on Ripple loomed, demand for this coin grew even more.
On the other hand, CNF reported that Ripple has joined the DIFC Innovation Hub to promote blockchain innovation in the UAE. This collaboration intends to accelerate digital asset and blockchain innovation in the UAE by linking the next generation of developers with the DIFC Innovation Hub.
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