Bitrabo Editorial
The prolonged legal dispute between Ripple and the US Securities and Exchange Commission (SEC) has reached a milestone with Judge Analisa Torres imposing a $125 million penalty on Ripple. This ruling will have significant implications for both parties, with the possibility of appeals on the horizon.
Ripple and SEC After the Ruling
Ripple is required to pay the SEC a fine of $125 million for breaking securities laws by selling XRP to institutional investors without proper registration. Despite this violation, the court clarified that XRP itself is not classified as a security. While Ripple will pay the penalty, it is notably less than the SEC’s initial proposal of $2 billion. Ripple is ready to comply with the fine, emphasizing its resolve to continue business operations smoothly.
In addition to the monetary penalty, the court issued an injunction against future breaches, which Ripple intends to adhere to. The injunction is perceived as straightforward and manageable for Ripple, outlining a directive for lawful operations.
An area of contention revolves around the lack of explicit guidance regarding Ripple’s On-Demand Liquidity (ODL) service in the injunction order. While the court hinted at potential violations, it did not clearly address this aspect.
Possibility of an Appeal
Both Ripple and the SEC have the option to appeal the ruling within 60 days. Ripple’s stance hints at an unlikely appeal, viewing Judge Torres’ decision as conclusive. Ripple’s CEO and legal representatives have expressed satisfaction with the outcome, signaling acceptance of the ruling.
However, discussions suggest a likelihood of the SEC appealing specific elements of the judgment. Contradictory opinions exist regarding the potential course of action, with some anticipating an appeal based on certain aspects deemed unfavorable to the regulator.
Despite the mixed reactions and speculations, the conclusion of this legal battle marks a significant development and potential turning point for Ripple and regulatory dynamics within the cryptocurrency industry.