XRP Surges 17% After Ripple Is Fined $125 Million in SEC Case
Ripple has been ordered to pay a $125 million fine by a U.S. federal court. This has concluded a prolonged legal struggle with the Securities and Exchange Commission (SEC).
This ruling has had a positive impact on the price of XRP, which surged double digits after the announcement.
Key points:
- Judge Analisa Torres imposed a $125 million fine on Ripple.
- The penalty is significantly lower than the SEC’s initial $2 billion demand.
- XRP price jumped over 17% following the announcement.
Even though the court found that certain institutional sales by Ripple violated securities laws, it stopped short of classifying all XRP transactions as securities offerings.
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This decision has been met with a mix of relief and celebration within the Ripple community. Brad Garlinghouse, Ripple’s CEO, took to X to frame the outcome as a victory, stating, “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.”
Ripple (XRP) surges 17% following the announcement
The price of XRP was quick enough to surge by 17%, climbing from $0.4942 to $0.6035 in the hours following the announcement.
Judge Torres’ ruling also ordered Ripple to refrain from future securities law violations. The $125 million penalty, while substantial, falls far short of the SEC’s initial demand for $2 billion.
Garlinghouse stated that the court reduced the SEC’s demand by 94% by recognizing that they had overplayed their hand. Ripple’s CEO also said that he respects the court’s decision.
