Could Ripple’s Pro-Lawyer Judge Torres Set a Precedent for Other Crypto Lawsuits, According to Bloomberg
In a recent development, the lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC) has concluded with the court ordering Ripple Labs to pay a $125 million civil penalty. This penalty is significantly lower than the $2 billion initially sought by the SEC, which could potentially have implications favouring crypto companies.
Ripple-SEC Major Precedent for Subsequent Crypto Lawsuit
The outcome of this case is expected to set a precedent for future crypto-related legal proceedings. It may have implications for ongoing lawsuits involving major players in the crypto industry such as Binance, Coinbase, and Consensys as per bloomberg report.
Judge Torres’s ruling in the Ripple vs SEC case was a partial victory for both parties. While Ripple Labs has been ordered to pay a civil penalty of $125 million, the court rejected the SEC’s demands for $876,308,712 in disgorgement and $198,150,940 in prejudgment interest. However, the court ruled in favor of the SEC’s assertion that Ripple Labs violated Section 5 of the Securities Act of 1933 by selling unregistered securities. Nonetheless, Ripple Labs can still conduct XRP securities sales with a registration statement.
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The court also dismissed the SEC’s claim that XRP should be classified as a security under the Howey test. Ripple argued that XRP sales did not meet the Howey test criteria as they occurred in the secondary market and did not involve profit pooling. This ruling sets a strong precedent for similar cases.
Following the ruling, the crypto community is now awaiting potential appeals from either the SEC or Ripple. Ripple Labs’ CEO and CLO have expressed satisfaction with the ruling and indicated that they do not intend to appeal. However, legal experts believe that the SEC might appeal last year’s summary judgment and remedies decision within 60 days.
XRP Price Action
As for the market impact, the price of XRP has seen a 2% increase in the past 24 hours and a 15% increase over the week, with the current price standing at $0.578. Technical analysis suggests a potential bull flag pattern breakout, signaling a projected 22% uptrend to $0.69, possibly influenced by considerations of an IPO by Ripple and the potential approval of a spot XRP ETF.
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