The Ripple vs. SEC legal battle has finally come to an end after four long years of court proceedings. The Securities and Exchange Commission (SEC) filed a lawsuit against Ripple in 2020 over the sale of XRP tokens, leading to a highly publicized case in the crypto community. The latest development in the case occurred on August 7, when the court imposed a $125 million penalty on Ripple.
The SEC initially sought a hefty fine of at least $2 billion for Ripple’s alleged violations of the Securities Act. However, Ripple argued for a much lower penalty of $10 million. Ultimately, the court ruled in favor of a $125 million penalty for Ripple, marking a significant outcome in the case.
In a partial victory for Ripple in July 2023, the court determined that 1,278 institutional sales of XRP tokens violated the Securities Act of 1933. However, it was found that programmatic sales to retail investors did not breach the Act.
Judge Analisa Torres, who presided over the case, issued the $125 million penalty against Ripple on August 7. She also instructed Ripple to refrain from further violations and dismissed the SEC’s requests for disgorgement and prejudgment interest, citing a lack of evidence of “pecuniary harm.”
With the SEC having a 60-day window to appeal the decision, speculation abounds as to whether they will pursue further legal action. As the deadline looms closer, there has been no indication of an appeal from the SEC. Some believe that political factors may be influencing the SEC’s decision, as administrative changes could be on the horizon in November.
In a surprising turn of events, the SEC quietly dropped charges against Ripple’s CEO Brad Garlinghouse and co-founder Chris Larsen in October 2023. This development has left the crypto community eagerly awaiting the SEC’s next move in the case.
If the SEC chooses not to appeal within the remaining 17 days, Ripple will be required to pay the $125 million penalty and the case will finally be closed. However, if the SEC decides to appeal, the legal battle could extend into 2025, potentially impacting Ripple’s operations in new jurisdictions established over the past four years.
As the crypto world watches and waits, only time will reveal the ultimate outcome of the Ripple-SEC case and what implications it may have for Ripple and the broader cryptocurrency industry.