XRP News Today: Ripple Wins Big as Judge Slashes SEC’s $2B Lawsuit Penalty

XRP Soars to $0.64 Amid Landmark SEC Verdict: What’s Next?

On Wednesday, August 7, XRP surged by 18.28%. Following a 3.55% gain on Tuesday, August 6, XRP closed at $0.5998. Significantly, XRP bucked a negative crypto session as the total crypto market cap fell by 1.75% to $1.906 trillion.

SEC vs. Ripple: Court Verdict on the SEC’s Motion for Remedies

On Wednesday, August 7, Judge Analisa Torres delivered the final verdict in the SEC v Ripple case.

Defense attorney James K. Filan shared the court ruling regarding the SEC’s motion for remedies and judgment on Ripple’s violations of Section 5 of the US Securities Act.

The SEC sought injunction relief, disgorgement of ill-gotten profits, and civil penalties.

Key rulings included,

• Granted: SEC’s request for injunction relief.
• Denied: SEC’s request for disgorgement and prejudgment interest.
• Granted: SEC’s request for a civil monetary penalty in part.

Judge Torres imposed a penalty of $125,035,150 on Ripple selling unregistered XRP to institutional investors, substantially lower than the SEC’s proposed $876,308,712.

Judge Torres based the penalty on a first-tier civil violation, with no allegations of fraud, deceit, manipulation, or evidence of recklessness.

The SEC had also sought a disgorgement of about $1,100,000,000.

Ripple’s Reaction to the Court Verdict

Ripple CEO Brad Garlinghouse reacted to the verdict, stating,

“The SEC asked for $2B, and the Court reduced their demand by ~94% recognizing that they had overplayed their hand. We respect the Court’s decision and have clarity to continue growing our company. This is a victory for Ripple, the industry and the rule of law. The SEC’s headwinds against the whole of the XRP community are gone.”

Ripple Chief Legal Officer Stuart Alderoty said,

“A final judgment. The Court rejects the SEC’s suggestion that Ripple acted recklessly and she reminds the SEC that this case did not involve any allegations of fraud or intentional wrongdoing, and no one suffered any financial harm. She rejects the SEC’s absurd demand for $2B in fines and penalties. We respect the $125M fine the Court has imposed for certain historic sales to sophisticated third parties.”

Could the SEC Appeal the Court Rulings?

In August 2023, the SEC filed a Motion for Interlocutory Appeal regarding the Programmatic Sales of XRP ruling. Judge Torres rejected the SEC’s Motion in October 2023, delaying an appeal until the final verdict.

With Judge Torres delivering the final verdict, the SEC could now appeal the Programmatic Sales and other rulings.

Pro-crypto lawyer MetaLawMan reacted to the court verdict, saying,

“My guess is both sides will appeal.”

The SEC could appeal against the Programmatic Sales ruling, the remedies-related rulings, or both.

XRP Reaction to the Verdict

In response to the August 7 court verdict, XRP rallied from a low of $0.4922 to a high of $0.6437. The rally was modest compared to the July 2023 reaction, when XRP surged from sub-$0.50 to a high of $0.9327 following the Programmatic Sales of XRP ruling. The moderate gains suggest investors expect potential appeals.

Investors should remain alert, as appeals could adversely affect XRP price trends. Stay updated with our latest news and analysis to manage your exposure to XRP and the broader crypto market.

XRP Price Action

Daily Chart

XRP sat above the 50-day and 200-day EMAs, sending bullish price signals.

A breakout from the Wednesday high of $0.6437 would support a move to the $0.6609 resistance level. A break above the $0.6609 resistance level could give the bulls a run at the $0.70 handle.

SEC vs. Ripple case-related news requires consideration, with SEC plans to appeal likely to impact XRP demand.

Conversely, a break below the $0.5739 support level could give the bears a run at the 50-day and 200-day EMAs. A drop below the EMAs would bring the trend lines into play.

With a 14-day RSI reading of 57.20, XRP could climb to $0.70 before entering overbought territory.