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A judge has ordered Ripple to pay just over $125 million in civil penalties, officially ending the SEC’s lawsuit & concluding that XRP is not a security. The lawsuit has gone on for two years, but the decision finally puts a nail into the lawsuit for good.
Judge Analisa Torres came to the conclusion today according to newly released court documents. The $125.035 million fine is well below the $1 billion in disgorgement and prejudgment interest and $900 million in civil penalty the SEC sought. There is wide expectation amongst experts and those close to the lawsuit that the SEC will appeal.
Ripple Wins The SEC Lawsuit?
In addition, Judge Torres banned Ripple from future violations of federal securities laws on Wednesday. The judge stated while she isn’t making a judgment that Ripple has violated any laws after the SEC filed its lawsuit, the company may well “cross the line.” “Rather, the Court finds that Ripple’s willingness to push the boundaries of the Order evinces a likelihood that it will eventually (if it has not already) cross the line,” she said. “On balance, the Court finds that there is a reasonable probability of future violations, meriting the issuance of an injunction.”
Also Read: Donald Trump: Plan to Fire SEC Chair Might Backfire
Ripple must file a registration statement if it intends to sell any securities in the future according to the ruling. Following the conclusion of the Ripple v SEC lawsuit, XRP rose substantially. At press time, it sits at $0.5883, up nearly 16% today alone. The decision is also expected to positively impact the entire crypto market, something that has desperately been needed following the recent market crash.
In a brief statement to X, Ripple CEO Brad Garlinghouse shared his respect for the court’s decision. “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 gone.”
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