The post Ripple Vs SEC: Judge Torres Ruling to Guide Future Crypto Cases appeared on BitcoinEthereumNews.com.

Ripple Labs’ lawsuit against the U.S. Securities and Exchange Commission (SEC) has been a closely watched legal battle, and Judge Analisa Torres has just delivered a clear verdict. The court fined Ripple Labs $125m, substantially less than the $2 billion that the SEC initially claimed it was owed. This decision is significant for the crypto industry and may have ramifications for other ongoing actions. Ripple Avoids $876 Million Penalty in SEC Case This is a partial win for both Ripple and the SEC. Ripple Labs did not have to pay the $876 million and $198 million in prejudgment interest that the SEC had sought. However, the company is currently banned from offering or selling unregistered securities under Section 5 of the Securities Act of 1933. The SEC was victorious on the unregistered securities matter but Judge Torres dismissed the agency’s Howey test on XRP. Ripple claimed that XRP sales should not fall under the Howey test as sales were made in the secondary market. They added the sales were not with the pooling of profits. This part of the ruling could be quite positive and create a suitable basis for other similar crypto-connected cases. Ripple Ruling May Influence Crypto Legal Battles Ahead The current case can impact other legal procedures with large cryptocurrency companies such as Coinbase, Binance, and ConsenSys. Bloomberg Intelligence analyst Elliot Stein pointed out that the decision could be useful in Coinbase’s legal confrontation with the SEC. Ripple’s case can help define the rules of conflict of interest in the sphere of crypto programmatic and secondary sales. The wider crypto community is waiting to see if the SEC, or Ripple, will decide to appeal Judge Torres’ ruling. Ripple Labs CEO Brad Garlinghouse and CLO Stuart Alderoty said that they are happy with the ruling. They added there are no plans to…

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Filed under: News - @ August 14, 2024 6:19 pm