What to Know
- $50M fine paid in USD, not XRP, clarified by SEC.
- Ripple’s case sets precedent on token sales.
- XRP market shows positive response post-settlement agreement.
Ripple Settles SEC Suit Without XRP Acknowledgment
The SEC initially filed a lawsuit against Ripple Labs, Inc. in December 2020. The $50 million settlement resolves accusations without admitting XRP as a security. Judge Analisa Torres, who oversaw the case, emphasized regular civil penalty payment, noting:
“The court ordered that Ripple be permanently restrained and enjoined from future violations of Section 5 and ordered it to pay a civil penalty” – Caroline A. Crenshaw, Commissioner, U.S. Securities and Exchange Commission .
No official documents indicate the fine being paid in XRP, emphasizing regular civil penalty payment.
XRP Jumps 9% Following Settlement Announcement
XRP prices surged approximately 9% post-settlement news, reflecting increased investor optimism. Market sentiment seems temporarily bolstered by regulatory clarity.
The settlement acts as a regulatory navigating point for future crypto-related enforcement under SEC Chair Paul Atkins’ leadership .
Institutional Sales Confirmed as Securities, Not Secondary Markets
Similar cases involving EOS and Telegram shaped precedent but Ripple’s situation reinforces institutional sales as securities while protecting secondary markets.
Future enforcement actions may align with Ripple’s case rulings, directing towards balanced digital asset regulation and industry guidelines.
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