- Judge Torres upholds SEC lawsuit against Ripple.
- Ripple paid $125 million in fines.
- Ripple sales remain under legal scrutiny.
Judge Analisa Torres has decided not to drop the SEC’s lawsuit against Ripple Labs, citing ongoing violations of securities laws despite arguments from Ripple’s legal team.
Ripple’s Legal Battle and Regulatory Compliance
The decision underscores the seriousness of regulatory compliance for cryptocurrencies and signals sustained legal scrutiny for XRP sales.
Ripple’s ongoing legal battle with the SEC continues as Judge Torres decided against ending the lawsuit. Her ruling cited reasonable probability of continued securities law violations. Ripple representatives argued for clarity and fairness, highlighting unresolved matters. Despite Ripple’s appeals, the court maintained its stance, focusing on institutional sales of XRP as unregistered securities.
The SEC’s position on XRP’s retail sales provides limited respite, but ongoing legal challenges persist. Ripple agreed to pay a substantial $125 million penalty, which has affected XRP’s market outlook. The judgement has not significantly impacted other cryptocurrencies such as ETH or BTC. However, Ripple’s legal clarity has prompted similar tokens’ issuers to reassess their compliance tactics. Former SEC lawyer Marc Fagel emphasized that “courts act on findings, not opinions, and Ripple’s sales constituted clear regulatory violations,” influencing industry compliance expectations.
XRP’s market strategies are being rewritten to align with regulatory expectations. Ripple investors and developers remain attentive to any legal shifts, aiming to adapt swiftly to the evolving regulatory landscape.
