The four-year legal battle between Ripple and the SEC has finally reached a significant conclusion. The SEC initially demanded a staggering $2 billion fine, but Ripple only has to pay $125 million—a reduction of 94%! This outcome is a monumental win for Ripple and could have substantial implications for XRP.
Ripple Case Is Over
On August 7, Ripple scored a major victory when a judge slashed the SEC’s original fine by 94%, reducing it from $2 billion to just $125 million. This ruling is seen as a big win not just for Ripple, but also for the entire cryptocurrency industry and the legal framework surrounding it.
However, the battle might not be entirely over. The SEC has until October 6 to file an appeal, potentially prolonging the case until 2025. There’s speculation that Ripple may have already paid the fine, indicating the official end of their legal struggle.
In a recent tweet, Ripple’s Chief Legal Officer, Stuart Alderoty, pointed out that while Ripple’s legal battle with the SEC is over, the “fair notice” defense remains relevant for other companies.
Ripple’s case is over, but the ‘fair notice’ defense is still alive for others. The SEC cites the 2017 DAO report as industry notice that ‘crypto asset securities’ are subject to US securities laws. Seven years later, the SEC apologizes to a federal judge—surely a person of at…
— Stuart Alderoty (@s_alderoty) September 13, 2024
While Ripple’s case is settled, Alderoty’s tweet suggests that the broader crypto industry could still use this defense in ongoing or future legal disputes with the SEC.
The Importance of ‘Fair Notice’
The “fair notice” defense has been a crucial part of Ripple’s legal strategy, where the company argued that the SEC failed to provide clear guidance on whether XRP should be classified as a security.
Stuart Alderoty recently emphasized that the SEC continues to reference the 2017 DAO report as proof that the crypto industry was notified about “crypto asset securities” falling under U.S. securities laws. However, seven years later, this has not only confused the industry but has also created uncertainty in the courts.
Alderoty also pointed out that the SEC recently had to apologize to a federal judge for the confusion caused by using the vague term “crypto asset securities.” This apology highlights the challenges regulators face in consistently interpreting and enforcing these rules, making it tougher for businesses to comply with the shifting regulatory landscape.
XRP Path To $3.4
With Ripple’s case against the SEC now settled, analysts believe that XRP could make its way back to its previous all-time high of $3.40. Currently, XRP is trading at around $0.58, showing a 3.2% increase, with a market cap of $32.8 billion.
The resolution of this case removes a significant cloud of uncertainty that has hung over XRP for years. This newfound clarity could potentially attract new investors, driving up demand and, consequently, the price of XRP.
