Ripple makes significant progress in its legal dispute with the SEC

Recently, Ripple made significant progress in its three-year lawsuit with the U.S. Securities and Exchange Commission ( SEC ), resulting in a substantial increase of 26% in the price of XRP.

The court ruled that Ripple's sale of XRP to retail investors did not violate federal securities laws, significantly reducing the SEC's original $2 billion fine request to $125.035 million, a reduction of up to 94%.

The legal dispute dates back to December 2020, when the SEC filed a lawsuit against Ripple. Over the following three years, Ripple has consistently achieved incremental victories through legal means, the most significant of which was the court ruling that XRP itself is not a security.

The Dispute Between Ripple and the SEC

The story of Ripple began in 2004 when a Canadian programmer launched a peer-to-peer payment system called RipplePay. In 2011, a group of cryptographers and technology experts developed a more efficient system, which eventually evolved into the XRP ledger, leading to the establishment of Ripple Labs.

Over time, Ripple has attracted numerous investors and partners. In 2013, it secured $3.5 million in funding and established partnerships with several banks in 2014. In 2015, the company hired an experienced executive for a key position and began promoting the XRP token.

On December 21, 2020, the SEC filed a lawsuit against Ripple Labs and its executives, accusing them of conducting an unregistered securities offering. The SEC believes that Ripple's actions of raising funds through the sale of XRP tokens violated federal securities laws. This news caused the price of XRP to drop from $0.58 to $0.21, and several trading platforms subsequently delisted XRP. Ripple's CEO denied the SEC's allegations and stated that the company would actively respond to the lawsuit.

In this protracted legal battle, both sides engaged in fierce confrontations. Ripple continues to seek legal support and evidence to prove that XRP is not a security.

key milestones

1. March 2021: Judge Sarah Netburn ruled that XRP has value and utility, distinguishing it from other cryptocurrencies. This ruling laid the groundwork for future classification and enforcement actions.

2. May 2021: Ripple strikes back at the SEC, pointing out its failure to provide clear guidance, which has prevented the company from complying with the requirements. Ripple's legal team emphasizes the inconsistencies and lack of transparency in the SEC's cryptocurrency regulation.

3. July 2023: Judge Analisa Torres partially supported Ripple, ruling that XRP itself is not a security. This ruling marked an important legal victory for Ripple, leading to a significant increase in the price of XRP.

Other Important Events

• Multiple trading platforms quickly delisted XRP after the SEC lawsuit, significantly impacting the XRP market.

• Ripple has spent over $200 million in legal fees in response to SEC charges, demonstrating the company's determination and financial support.

• Despite facing legal challenges, Ripple continues to advance its international expansion strategy and establish partnerships with multiple financial institutions.

Throughout the legal battles, Ripple has continuously achieved milestone victories, which not only boosted market confidence in XRP but also provided valuable legal experience for the entire cryptocurrency industry.

Latest Settlement Progress

In March 2024, the SEC originally planned to ask the judge to impose a $2 billion fine on Ripple Labs. Ripple's Chief Legal Officer stated that the company would submit a response next month. In May, the SEC insisted on imposing a hefty fine of nearly $2 billion on Ripple in the amended documents.

However, the court ultimately ruled that the SEC's fine request was excessive, significantly reducing it to $125 million. This ruling is a major victory for Ripple and the entire crypto industry. Following the announcement of the ruling, the price of XRP surged rapidly, reaching a high of $0.6434, with a 24-hour increase of 19.7%.

Analysts have pointed out that although a technical correction may occur in the short term, this ruling has significantly boosted market confidence, and the long-term trend of XRP is worth paying attention to.

Conclusion

The legal dispute between Ripple and the SEC and its latest developments not only affect the market performance of XRP but also have a profound impact on the entire cryptocurrency industry. Ripple has demonstrated strong resilience in this legal battle and has achieved a significant victory.

In the future, as the regulatory environment becomes clearer, the cryptocurrency industry may welcome more development opportunities. Investors need to closely monitor market trends, seize investment opportunities, and achieve asset appreciation.