Ripple has finally won its long-running legal battle against the U.S. Securities and Exchange Commission (SEC) with a major victory. The SEC originally wanted Ripple to pay a massive $2 billion fine, but Ripple will now only pay $125 million—a 94% reduction. This huge win could have a big impact on Ripple and its token, XRP.
Ripple’s Chief Legal Officer, Stuart Alderoty, confirmed that the case is closed for Ripple, but the “fair notice” defense still holds importance for other companies in the crypto space.
Now that XRP is officially considered not a security, many are asking if this will drive investors back into the token. Could this lead to XRP reaching its all-time high of $3.40 again?
A Major Win for Ripple and Crypto
On August 7, Ripple achieved a significant win when a judge reduced the SEC’s fine from $2 billion to just $125 million—a 94% cut. This ruling is seen as a major victory not only for Ripple but also for the entire crypto industry.
However, this may not be the final chapter. The SEC has until October 6 to file an appeal, which could drag the case out until 2025. There are also reports that Ripple might have already paid the fine, officially closing the case.
The Importance of ‘Fair Notice’
In a recent tweet, Stuart Alderoty pointed out that while Ripple’s case is over, the “fair notice” defense is still relevant for other companies. This defense was key in Ripple’s case, where the company argued that the SEC had not provided clear guidance on whether XRP should be treated as a security.
Alderoty also mentioned that the SEC continues to rely on its 2017 DAO report as evidence that the crypto industry was warned about “crypto asset securities.” Yet, seven years later, this has caused more confusion for both the industry and the courts.
SEC Apologizes!
In a surprising move, the SEC recently apologized to a federal judge for using the vague term “crypto asset securities.” This apology highlights how difficult it has been for regulators to consistently apply rules, which makes it even harder for crypto companies to stay compliant in an ever-changing regulatory environment.
With Ripple’s legal issues behind it, analysts believe XRP could make a strong comeback. XRP is currently trading around $0.58, up 3.2%, with a market cap of $32.8 billion. Many are wondering if this legal win will help push XRP back to its all-time high of $3.40.
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The future of XRP is brighter than ever. What’s next? Stay tuned.
