Ripple CEO on Court Ruling: A Positive Outcome for XRP

Ripple CEO Brad Garlinghouse hailed the final judgment as a significant “victory” for both his company and the cryptocurrency industry. He emphasized that the agency’s “headwinds” against XRP holders are now cleared. Consequently, the XRP token surged over 17% in the past 24 hours, according to CoinGecko data.

The SEC asked for $2B, and the Court reduced their demand by ~94% recognizing that they had overplayed their hand. We respect the Court’s decision and have clarity to continue growing our company.

This is a victory for Ripple, the industry and the rule of law. The SEC’s…
— Brad Garlinghouse (@bgarlinghouse) August 7, 2024

Ripple’s Financial Penalty

The court ordered Ripple to pay $125 million in civil penalties. Although this is a substantial sum, Garlinghouse pointed out that it is only a fraction of the $2 billion that the U.S. Securities and Exchange Commission (SEC) initially demanded. The SEC had argued that such a hefty fine would deter Ripple and other industry participants from future violations of securities laws and compensate for the harm caused by Ripple’s actions.

However, since the court did not accuse Ripple of fraud or misappropriation, U.S. District Judge Analisa Torres opted for significantly smaller penalties. She acknowledged that Ripple’s violations of Section 5 constituted a “serious offense.” Nevertheless, the final penalties are much larger than the $10 million Ripple had advocated for.

Industry Reactions

Analyst James Seyffart agrees that the outcome represents a win for Ripple, despite the relatively hefty penalties. He remarked on social media, “I’m sure the SEC will refer to this as a win for getting a $125 million penalty. But that’s really a win for Ripple as far as I’m concerned.”

Ripple must pay the $125 million penalty within 30 days. Stuart Alderoty, Ripple’s top lawyer, expressed respect for the court’s decision, stating, “We respect the $125M fine the Court has imposed for certain historic sales to sophisticated third parties.”

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Ripple co-founder Chris Larsen celebrated on social media, declaring that the SEC’s “unhinged” campaign against the company is “finally over.” However, it is essential to note that the SEC might still appeal the case.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.