The 4-Year SEC vs Ripple Case Is Over – the Court Ruled That Ripple Violated Securities Laws but Faced $123 Million Penalty

Finally the long term since 4 year ongoing  battle between the American securities regulatory body and Ripple firm has been over.

The long-running legal battle between the American securities regulatory body and Ripple has finally come to an end.

Ripple, a San Francisco-headquartered fintech firm, is known for its blockchain and XRP cryptocurrency-powered payment services. In December 2020, the United States Securities and Exchange Commission (SEC) sued Ripple for operating payment services via XRP cryptocurrency and selling XRP, among other charges against the company. The SEC also raised questions over the nature of XRP cryptocurrency, claiming its use violated the Securities Act, as XRP was considered a security token under the SEC’s jurisdiction.

As per the latest court ruling, Ripple won the battle against the SEC’s charges and allegations but faced a $123 million penalty in civil penalties.

The court ruled that Ripple violated securities laws through its “Institutional Sales” of XRP cryptocurrency, which were deemed to be unregistered investment contracts. However, the court ruled that Ripple's “Programmatic Sales” and “Other Distributions” of XRP did not constitute unregistered securities offerings.

Crypto law expert Jeremy Hogan called this court ruling a very big win for Ripple firm.

IT'S OVER! The SEC v Ripple case has been quite a journey – thanks for sharing it with me.

$125 Million penalty and a GENERIC injunction Order.

This is a BIG win for Ripple, no doubt about it.

Have a Wonderful Day!https://t.co/hCZZYsMl7E

Ripple CEO Brad Garlinghouse said that the SEC was demanding a $2 billion fine from Ripple based on false fraud allegations, but the court ruling clarified how the SEC was misusing its power.

Arthur Hayes: Trump’s Crypto Adoption Efforts…

Nasdaq and BlackRock Propose Ethereum ETF Options

Four Factors Could Trigger a Crypto Bull Market,…

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…

Ripple's legal expert Stuart Alderoty also said that the court rejected the SEC's claims that Ripple acted recklessly and noted there were no allegations of fraud or financial harm. The court dismissed the SEC's demand for $2 billion in fines, instead imposing a $125 million fine for specific past sales to sophisticated third parties.

A final judgment. The Court rejects the SEC's suggestion that Ripple acted recklessly and she reminds the SEC that this case did not involve any allegations of fraud or intentional wrongdoing, and no one suffered any financial harm. She rejects the SEC's absurd demand for $2B in… https://t.co/RbwpBnoXJG

XRP price action

Following this news, the trade price of XRP coin surged from $0.49 to $0.64, indicating a 30% increase. At the time of writing this article, the trade price of XRP coin is up by 20%.

Read also: Arthur Hayes: Trump’s Crypto Adoption Efforts Likely to Fail Due to Government Resistance

The above is the detailed content of The 4-Year SEC vs Ripple Case Is Over – the Court Ruled That Ripple Violated Securities Laws but Faced $123 Million Penalty. For more information, please follow other related articles on the PHP Chinese website!