A federal judge has issued a split decision in the long-running legal battle between Ripple and the SEC over XRP.
In a landmark decision that could reshape the cryptocurrency industry, a federal judge has ruled in favor of Ripple Labs in part of its long-standing legal battle with the U.S. Securities and Exchange Commission (SEC). The ruling, issued today, provides major relief for the cryptocurrency industry, which has been grappling with regulatory uncertainty.
XRP Not a Security: Court Rules
The SEC had accused Ripple of conducting an unregistered securities offering by selling its XRP token. The agency sought a hefty $2 billion penalty, arguing that XRP should be classified as a security rather than a digital currency. Ripple vehemently denied these claims.
Judge Analysa Torres’ decision was a mixed bag for both parties. While the court found that certain sales of XRP did indeed constitute securities offerings, it also determined that XRP itself is not a security. This is a major win for Ripple and has already sent shockwaves through the cryptocurrency market, with XRP’s price surging dramatically after the announcement.
Ripple’s $125M Fine Slashed from SEC’s $2B Proposal
The ruling also imposed a $125 million civil penalty on Ripple and enjoined the company from future securities law violations. While substantial, the penalty is significantly less than the SEC had demanded.
This decision has far-reaching implications for the cryptocurrency industry. It clarifies the murky regulatory landscape and could influence the classification of other digital assets. However, the SEC’s continued pursuit of certain aspects of the case indicates that the battle is not entirely over.
