Ripple definitively wins against the SEC: the crypto XRP soars in the market

After 4 long years of court battles, Ripple sees its case against the SEC definitively concluded, and XRP celebrates in the crypto markets by marking a growth of +20%.

The judge Annalisa Torres, the same one who last year explicitly stated that XRP is not a security, has decided to put an end to the matter with a historic ruling.

Ripple is obligated to pay a fine of 125 million dollars, significantly lower than the amount requested by the federal agency, but by doing so it moves away once and for all from the eye of the storm.

Let’s see everything in detail below.

Ripple wins the case against the SEC after 4 years of battles in court

Incredibly, the payment company Ripple and its crypto XRP draw the curtain and definitively conclude the historic lawsuit against the SEC.

In December 2020, the Federal Commission had seriously accused Ripple Labs of conducting unregistered securities offerings through the sale of XRP tokens.

In the last 4 years, several legal battles have followed one another, with verdicts that favored one side or the other without definitively closing the case.

In July 2023, Judge Annalisa Torres had ruled that XRP is not a security, giving a twist to the matter. However, a few months later, her ruling was subject to criticism and other judges sided with the SEC, reigniting the issue.

Now, after 4 long years of waiting, it really seems that the case has been formally closed following the latest ruling in New York.

The judge of the United States District Court (the same mentioned above) has issued a final ruling on the SEC’s motion.

Here is what was established verbatim: 

“The SEC’s motion for remedies and entry of final judgment is granted in part and denied in part. The court will issue a final judgment prohibiting Ripple from further violations of securities laws and imposing a civil penalty of $125,035,150.”

It is official: XRP is not a security and Ripple no longer has to respond to any accusations!

Despite Ripple being obligated to pay a penalty for past irregularities, we can still celebrate a happy ending for the cryptographic company.

The fine is significantly lower than the amount requested by the SEC, and puts an end to one of the most convoluted court cases in the history of crypto.

For the cross-border payments project and for its token XRP, several growth opportunities are now opening up in the market.

Just to cite an example, from today onwards the currency can be sold freely to retail within the United States.

The judge agrees on a penalty of 125 million dollars to Ripple and redeems it from its sins

The judge Annalisa Torres, the same who in the past had issued a ruling in favor of the crypto XRP, has agreed on a fine to Ripple Labs to resolve the conflict with the SEC.

The sanction amounts to 125 million dollars and refers to 1,278 institutional sales transactions, illicitly advanced in the past by Ripple.

Although the figure may seem high and not conceivable as a victory for the cryptographic company, it remains significantly lower than what was requested by the SEC.

In fact, the agency had formally cited a fine of 1.1 billion dollars in restitution and pre-judgment interest, with another 900 million in civil penalties.

The fine imposed by the judge’s ruling is therefore 94% lower than the record amount that was being discussed.

At the same time, however, Ripple was requesting a civil penalty of 10 million dollars which was not accepted. In any case, all in all, Ripple emerged victorious from this long and costly story.

The ordinance of judge Torres does not end with just a fine but imposes on Ripple to violate in the future the federal laws on securities. The company cannot sell the crypto XRP to an institutional public in the USA.

It was also agreed upon an injunctive document that requires Ripple to file a registration statement if it intends to sell securities.

The court has indeed declared that Ripple could still exceed the allowed limits in the future and would deserve an additional injunction, that is, an additional fine.

These are the words pronounced in the ruling on Wednesday:

“The Court finds that Ripple’s willingness to push beyond the limits of the Order demonstrates a likelihood that it will eventually (if it hasn’t already) exceed the limit.. “All in all, the Court finds that there is a reasonable likelihood of future violations, warranting the issuance of an injunction”.

In a statement on X, Ripple CEO Brad Garlinghuose publicly shared the news announcing a historic victory against the SEC.

It is not, however, an exclusive victory for Ripple, but for the entire cryptographic industry that has been massacred for years by the ostracism of the U.S. Securities and Exchange Commission.

XRP (Ripple) grows by 20% in the crypto market after the SEC news

In the midst of the pronouncement of the final verdict in the Ripple vs SEC case, yesterday the crypto XRP experienced a strong rally growing by 20% in just one day.

In a single candle the cryptocurrency has recovered much of the collapse that characterized the trend of last week.

While many other cryptocurrencies remain crushed under various macroeconomic fears, XRP recaptures the 0.61 dollar mark and goes to attack the local resistance at 0.65 dollars.

From the bottom on Monday to the top yesterday, XRP saw a maximum movement amplitude of 53%, highlighting strong volatility in the market.

The volumes of exchange have been particularly significant, suggesting a possible bullish continuation in the coming days.

Despite the excellent result in the short term, we remind you that XRP in the chart against BTC has been suffocated for several years now.

After the bull market glorious of late 2017/early 2018, in which Ripple’s coin had reached 0.00022 sat, things started to go wrong.

The prices started to drop dramatically and in the subsequent bull market of 2021 XRP did not manage to get anywhere near the previous target.

We will now see if after the victory in court against the SEC it will be able to recover ground and return to its period of maximum expansion.

It probably won’t be able to return to the levels of 2017 anyway as it assumes that XRP grows by about 20X times.

We are talking about an increase in capitalization equal to 680 billion dollars, currently unlikely.