After winning a battle with the Securities and Exchange Commission (SEC) last year, Ripple (XRP) will this time have to pay a civil penalty of $125 million. Nevertheless, the company considers this to be a victory. Why?
Ripple to pay $125 million civil penalty to SEC
About a year ago, Ripple (XRP) wins resounding victory against the Securities and Exchange Commission (SEC)At the time, Judge Analisa Torres ruled that the sale of XRP on the secondary market did not constitute an unregistered sale of securities, which sent a major signal to the entire ecosystem.
💡 What is Ripple (XRP)?
However, another important part of the dispute still needed to be decided, namely the primary token sale. This time, Analisa Torres agreed with the SEC, considering that Ripple had indeed violated the securities law. As a result, The company will have to pay a penalty of 125 million dollars :
It is further ordered, adjudged and decreed that the defendant is liable for a civil penalty in the amount of $125,035,150 pursuant to Section 20(d) of the Securities Act. The defendant shall satisfy this obligation by paying $125,035,150 to the Securities and Exchange Commission within 30 days of entry of this final judgment.
Despite the size of the amount, Ripple still considers this outcome as positive. Its CEO, Brad Garlinghouse, even goes so far as to consider it a victory, since The SEC had initially sought a $2 billion fine :
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
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For its part, the SEC has not yet publicly reacted to this judgment on its social networks.
For its part, XRP welcomed this outcome very favorably, marking a progression of more than 20% in 24 hours. At the time of writing, the asset is trading at $0.62, for a capitalization of $34.7 billion.
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Source: Judgment
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Since 2021, I have devoted my free time to seriously training myself on cryptocurrencies in order to acquire as much knowledge and credibility as possible. I often have the opportunity to conduct interviews with influential figures in the blockchain industry. I also conduct in-depth analyses on Web3 themes to offer exclusive content to Cryptoast readers.
Vincent Maire
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