XRP, the seventh largest digital currency in market capitalization, rose by 18% in the last day. This revolves around decisions made by Judge Analisa Torres on the long-running Ripple vs SEC lawsuit that has been going on since December 2022. The two parties are expected to appeal the verdict, which they have done every time the case reaches a certain point to be solved.
Also Read: Breaking: Judge Torres Fines Ripple $125 Million, Forbids Future Securities Law Violations
Federal Judge Trims $2 Billion Bill from SEC.
MetaLawMan, a prominent lawyer in the crypto space, reported on social media platform X (formerly Twitter) that Judge Torres declined the SEC’s request for $2 billion from Ripple. However, for securities law offenses connected with institutional sales, Ripple has been directed to pay $ 125 million in penalties in civil proceedings without the need to return profits. The ruling also has an injunction in respect of the defendant from continuing to violate Section 5 of the Securities Act.
Ripple CEO Brad Garlinghouse was quoted as sharing some satisfaction with the decision that had been made. The SEC demand decreased by 94% due to the decision, which can only be seen as a positive for Ripple, the market as a whole, and the rule of law. According to Garlinghouse, the spearheads against the XRP community mounted by the SEC are out of the way.
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Application for Ripple’s ODL services
The cryptocurrency industry is speculating on the implications of the injunction on Ripple’s On Demand Liquidity (ODL) services in the United States. If affected, Ripple’s lawyer, Bill Morgan, believes the company will need to fight the decision that ODL sales are considered investment contracts.
XRP, Price therefore increases and Market performance
The historic decision that reduced the SEC’s demand has caused an increase in the Price of XRP. Currently trading at $0.606, XRP’s market capitalization has increased by 18% in the last 24 hours. Additionally, the trading volume of the altcoin surged 216.56%, reaching $5.1 billion. Over the previous month, XRP has risen nearly 44%, outperforming leading cryptocurrencies such as Bitcoin (BTC) and Ether (ETH).
Conclusion
Ultimately, Judge Torres’s ruling marks a significant victory for Ripple, drastically reducing the SEC’s penalty demand. This decision benefits Ripple and sends a positive signal to the broader cryptocurrency industry. As Ripple navigates the implications of the injunction on its ODL services, the company remains poised for further legal and market developments.
Also Read: Ripple CTO Elaborates on the Scams on Social Media Affecting Coinbase Users
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.