A U.S. federal court has officially approved the closure of a long-standing lawsuit between the Securities and Exchange Commission (SEC) and Ripple Labs. The decision, made by Judge Analisa Torres in the Southern District of New York, concluded nearly four years of legal battles that drew the attention of the crypto community.
The case began in December 2020 when the SEC accused Ripple of raising $1.3 billion through unregistered sales of securities in the form of the XRP token. Ripple argued that $XRP is a currency, not a security. In July 2023, Judge Torres delivered a partial victory for Ripple, ruling that sales of XRP on public exchanges are not securities, but institutional sales violated the law. In August 2024, Ripple was fined $125 million.
The final ruling resolves all disputes, as Ripple agreed to pay the fine without admitting broader guilt. This is seen as a victory for the crypto industry, as it clarifies that not all digital assets are securities, paving the way for clearer regulations under the new Trump administration.
Industry experts call this ruling a turning point, reducing regulatory uncertainty and increasing trust in blockchain projects. Ripple CEO Brad Garlinghouse called it a 'win for crypto,' emphasizing its significance for innovation and compliance.
After the ruling, the price of XRP increased by more than 10%, and the market reacted positively. This could impact future actions of the SEC against other companies, such as Coinbase and Binance.
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