‘Big Win for Ripple,’ XRP Lawyer Celebrates Historic End of SEC Lawsuit

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As a seasoned researcher who has closely followed the crypto market’s evolution over the past decade, I must say that the recent ruling in the SEC lawsuit against Ripple feels like a significant turning point for the industry. The court’s decision to slash the fines by an astounding 94% is reminiscent of Bitcoin’s meteoric rise from pennies to thousands—an unexpected, yet exhilarating journey.

In the SEC lawsuit, Judge Torres has ordered that Ripple pays $125 million in civil penalties, a fraction of the fines the SEC had sought, putting an end to the nearly four-year legal battle it fought with the U.S. regulator.

Last July, Judge Torres decided that XRP could be considered a security under securities law when it’s offered to institutional investors. Originally, the SEC aimed for fines totaling nearly $2 billion, but Ripple contended they should only have to pay up to $10 million. In accordance with the verdict, the court does not currently believe that Ripple’s post-lawsuit sales infringed upon Section 5; however, a general injunction was imposed to prevent any future violations of securities laws.

As a crypto investor, I was relieved when Judge Torres denied the SEC’s demand for Ripple to return their profits from the sales. The SEC had requested an astonishing sum of over $876 million in disgorgement, along with an additional $198 million in interest and another whopping $876 million in civil penalties. However, I am hopeful that this decision will bring more clarity to the regulatory landscape in the crypto space.

According to the Judge, this case does not contain claims of fraud, theft, or any actions that are particularly blameworthy. Additionally, the Judge noted that the Securities and Exchange Commission (SEC) did not successfully demonstrate that Ripple’s lack of registration for sales caused substantial financial harm to investors.

In simpler terms, Brad Garlinghouse, head of Ripple, celebrated a significant win following a court decision that reduced the Securities and Exchange Commission’s (SEC) initial request by approximately 94%. As a result, the price of XRP surged up to 25% in response to this ruling.

XRP community reacts

In simpler terms, attorney Jeremy Hogan, who is a supporter of XRP, expressed his joy on the platform about the conclusion of the long-standing legal battle between Ripple and the SEC, referring to it as a significant victory for Ripple.

The SEC versus Ripple case has come to an end, what a ride we’ve had together! Thanks for joining me on this journey.

With a $125 million fine and a standard injunction order, this is certainly a significant victory for Ripple. Enjoy the rest of your day!

— Jeremy Hogan (@attorneyjeremy1) August 7, 2024

Hogan posted a snapshot of a section within the verdict concerning Over-The-Counter Digital Asset Sales (ODL), and he commented in a different tweet that the judge didn’t provide the Securities and Exchange Commission (SEC) with the specific language on ODLs that they had hoped for.

As a crypto investor, I’m expressing my viewpoint on Ripple’s stance regarding a specific part of the court’s decision. They believe this section, which restricts them from “engaging in an unregistered offering of institutional sales,” should be amended for clarity. Here’s what they propose:

The court found that the Securities and Exchange Commission’s suggested phrase is overly broad and redundant with certain actions already prohibited in the proposed judgment. Consequently, the court has decided to exclude the SEC’s proposed section II.

According to Hogan, the court order doesn’t alter the current situation regarding ODL sales because the judge’s refusal to accept the SEC’s phrasing supports Ripple’s point that no one could reasonably expect profits if XRP is merely kept for a brief period.

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2024-08-08 12:10