Judge Torres concludes Ripple's four-year legal battle with the SEC, issuing a fine for institutional sales but deeming crypto exchange transactions legal.
In a significant development, Ripple has been fined $125 million by Judge Torres for institutional sales, concluding a nearly four-year legal battle with the SEC. The court also issued an injunction against future violations of federal securities laws by Ripple. However, transactions involving Ripple on crypto exchanges were deemed legal.
The legal battle between Ripple and the SEC has been ongoing for almost four years. The SEC initially accused Ripple of conducting unregistered securities sales, which led to a prolonged court case. The SEC's initial penalty request was a staggering $2 billion, but this was significantly reduced to $125 million in the final ruling. Judge Torres' decision marks the end of this lengthy legal dispute.
One of the critical aspects of the ruling is that while Ripple was fined for institutional sales, transactions involving Ripple on crypto exchanges were deemed legal. This means that individuals and businesses trading Ripple on these platforms are not in violation of federal securities laws. Additionally, Ripple is required to file a registration statement for any future securities sales to ensure compliance with federal regulations.
Ripple's CEO and Chief Legal Officer have expressed their satisfaction with the ruling. They view the decision as a victory, particularly because there were no allegations of fraud or financial harm. They also criticized the SEC's initial demands as an overreach. The ruling provides a clearer regulatory framework for Ripple's future operations and sets a precedent for other cryptocurrency companies facing similar legal challenges.
