📣 Ripple Scores Legal Victory Over the SEC?
posted 8 Aug 2024
District Judge Analisa Torres of the Southern District of New York imposed a $125 million fine on Ripple, citing their sales of XRP to institutional clients as breaches of federal securities laws.
The $125.035 million fine was assessed against Ripple based on 1,278 unauthorized transactions as part of its institutional sales. The SEC had initially pushed for a fine of around $2 billion, while Ripple had argued for a limit of $10 million. Thus, the judge’s ruling is largely seen as a win for Ripple.
The SEC asked for $2B, and the Court reduced their demand by ~94% recognizing that they had overplayed their hand. We respect the Court’s decision and have clarity to continue growing our company. This is a victory for Ripple, the industry and the rule of law. The SEC’s headwinds against the whole of the XRP community are gonecommented Ripple CEO Brad Garlinghouse.
Beyond the fine, Ripple has been prohibited from continuing its XRP sales to institutional clients and is required to seek registration if it intends to sell securities in the future. The judge also clarified that the retail sale of XRP through exchanges does not violate any regulations.
In response to the ruling, XRP surged by 18%. In terms of market capitalization, the project nearly matched Circle's stablecoin USDC ($33.8 billion vs. $34.5 billion).
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