Ripple Vs SEC: Judge Torres Ruling Could End Other Crypto Lawsuits – Bloomberg

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As a seasoned crypto investor with over a decade of experience under my belt, I must say the recent Ripple vs SEC ruling is nothing short of a breath of fresh air. Having navigated through countless market fluctuations and regulatory uncertainties, this decision sets a strong precedent for the future of the industry.

Ripple‘s Legal Battle with SEC: After years of legal dispute, Ripple, a significant player in the cryptocurrency world, has been ordered by the court to pay a $125 million civil penalty to the U.S. Securities and Exchange Commission (SEC). The fine, which is much lower than the $2 billion initially demanded by the agency, could potentially shift the balance in favor of crypto companies.

Ripple Vs SEC Key Precedent for Other Crypto Lawsuit

On August 14th, Bloomberg’s report suggested that the resolution of the Ripple case could pave the way for similar legal proceedings involving Binance, Coinbase, and Consensys. The precedents set by this case, particularly in areas like programmatic crypto transactions and secondary sales, could significantly impact how these future disputes are resolved.

As a researcher, I’m closely following the developments in the high-profile Ripple vs SEC case, which has been a hot topic in the crypto sphere. After careful consideration, Judge Torres issued a verdict that can be considered a compromise for both parties. Instead of the initial demand of 876,308,712 by the SEC, Ripple Labs was ordered to pay a reduced civil penalty amounting to $125 million. Furthermore, in a win for Ripple, Judge Torres denied the SEC’s request for disgorgement worth $876,308,712 and prejudgment interest of $198,150,940. This decision marks a significant milestone in this landmark legal battle between Ripple Labs and the U.S. Securities and Exchange Commission.

Nevertheless, the judge decided in favor of the U.S. Securities and Exchange Commission, meaning Ripple Labs is prohibited from selling unregistered securities according to Section 5 of the Securities Act of 1933. However, they are allowed to continue XRP sales after submitting a registration statement.

The court did not agree with the Securities and Exchange Commission’s claim that XRP functioned as a security based on the Howey Test. Ripple argued that the sale of XRP did not correspond to the Howey test criteria, as it occurred in the secondary market without any centralized profit-sharing scheme. This ruling has established a significant legal principle and sets a powerful precedent.

According to Bloomberg Intelligence analyst Elliot Stein, Torres’ recent ruling on the Ripple vs SEC case benefits Coinbase Global in its own struggle with the regulatory agency, potentially increasing the likelihood of a positive outcome for Coinbase in this particular case.

Appeals In the XRP Lawsuit

The crypto world is curious to see if either the SEC or Ripple will challenge the court’s recent decision regarding remedies or any previous rulings. Brad Garlinghouse, CEO of Ripple Labs, along with CLO Stuart Alderoty, have expressed contentment with the judge’s ruling and stated their intention not to appeal the decision made by Judge Torres.

In the ongoing Ripple vs SEC case, lawyers speculate that the Securities and Exchange Commission (SEC) may choose to contest last year’s summary judgment and remedies decision within the next 60 days. Alternatively, the SEC could decide to appeal after Rippe has paid the specified civil penalties to the regulatory body within the next 30 days.

In the last day, the value of XRP increased by 2%, while over the past week, it surged by a substantial 15%. At present, it’s trading at approximately $0.578. The price reached a low of $0.5668 and peaked at $0.5831 within this period. An XRP price forecast suggests a potential breakout of the bull flag pattern due to Ripple’s plans for an Initial Public Offering (IPO) and the possible approval of a spot XRP Exchange-Traded Fund (ETF). This breakout could lead to a rise of 22%, taking the price up to around $0.69.

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2024-08-14 10:21