Ripple makes significant progress in its legal dispute with the SEC

Recently, Ripple achieved a significant victory in its three-year legal dispute with the U.S. Securities and Exchange Commission ( SEC ). The judge ruled that Ripple's sale of XRP to retail investors did not violate federal securities laws, and substantially reduced the SEC's fine request from the original $2 billion to approximately $125 million. This ruling led to a rapid 26% increase in the price of XRP.

Since the SEC filed a lawsuit against Ripple in December 2020, both parties have been engaged in intense legal disputes. In this protracted battle, Ripple has continuously achieved phased successes through legal means, the most critical of which is the court ruling that XRP itself does not constitute a security.

The Dispute Between Ripple and the SEC

The story of Ripple dates back to 2004, when Canadian programmer Ryan Fugger created RipplePay, a peer-to-peer payment system that predates blockchain technology. In 2011, a group of cryptographers and tech experts collaboratively developed a more efficient system, which eventually evolved into the XRP ledger and led to the establishment of Ripple Labs.

Over time, Ripple has attracted a large number of investors and partners. In 2013, it secured $3.5 million in funding and established partnerships with several banks in 2014. In 2015, the company hired well-known executives for key positions and began promoting the XRP token.

In December 2020, the SEC filed a lawsuit against Ripple Labs and its executives, accusing them of conducting an unregistered securities offering. This news led to a significant drop in the price of XRP, and multiple trading platforms delisted XRP. Ripple's CEO firmly denied the SEC's allegations and stated that the company would engage in a legal battle.

In this protracted legal battle, Ripple continues to seek legal support and evidence to prove that XRP is not a security. Here are some key milestones:

1. In March 2021, a judge ruled that XRP has value and utility, distinguishing it from other cryptocurrencies.

2. In May 2021, Ripple fought back against the SEC, pointing out that it failed to provide clear guidance.

3. In July 2023, a judge partially supported Ripple, ruling that XRP itself is not a security.

Despite facing legal challenges, Ripple continues to advance its international expansion strategy and has established partnerships with multiple financial institutions. The company has spent over $200 million in legal fees in response to SEC allegations, demonstrating its determination to fight back and financial support.

Latest Reconciliation Progress

In March 2024, the SEC originally planned to impose a fine of $2 billion on Ripple Labs. Ripple's Chief Legal Officer stated that the company would submit a response next month. In May, the SEC insisted on imposing a hefty fine of nearly $2 billion on Ripple.

However, the court ultimately ruled that the SEC's fine request was excessive, reducing it by about 94%, resulting in a fine of only $125 million. This ruling is a significant victory for Ripple and the entire cryptocurrency industry. Following the announcement of the ruling, the price of XRP surged rapidly, increasing by 19.7% within 24 hours, reaching a high of $0.6434.

Analysts point out that although there may be a technical correction in the short term, this ruling has significantly boosted market confidence, and the long-term trend of XRP is worth looking forward to.

Conclusion

The legal dispute between Ripple and the SEC, along with its latest developments, has not only affected the market performance of XRP but has also had a profound impact on the entire cryptocurrency industry. Ripple has demonstrated strong resilience in this legal battle and has achieved a significant victory.

With the regulatory environment becoming clearer, the cryptocurrency industry is expected to welcome more development opportunities. Investors need to closely monitor market trends, seize investment opportunities, and achieve asset appreciation.