Ripple (XRP) Price Skyrockets 27% in One Hour as Court Rules Institutional Sales Were Not Securities Offerings
- WBOYOriginal
- 2024-08-08 09:05:16265browse
In just one hour, the XRP price rallied 27% to a one-week high of $0.6406 on Wednesday after Judge Analisa Torres ordered Ripple Labs to pay only $125 million of the $2 billion fine sought by the US Securities and Exchange Commission (SEC) against the blockchain payments company after a four-year legal battle.
The XRP price soared 27% to a one-week high of $0.6406 on Wednesday after a court ruling in the US Securities and Exchange Commission (SEC) case against Ripple Labs ordered the blockchain payments company to pay only $125 million of the $2 billion fine sought by the SEC.
The court, applying a test derived from the Supreme Court, determined that Ripple's Institutional Sales constituted offers or sales of investment contracts in the ruling. However, the court differentiated Ripple's Programmatic Sales and Other Distributions, finding that they did not fall into this category. Additionally, the court clarified that the individual sales conducted by Ripple co-founders Chris Larsen and Brad Garlinghouse did not qualify as offers or sales of investment contracts for reasons akin to those outlined for Ripple's Programmatic Sales.
When deliberating on the penalty, the court concluded that a first-tier penalty was fitting in this instance, noting the absence of allegations related to fraud, deceit, or manipulation, along with the lack of established deliberate or reckless disregard for regulatory requirements. Moreover, the court noted that the SEC had not proven that Ripple's failure to register the Institutional Sales resulted in significant losses or risks to investors.
Consequently, the SEC's motion for remedies and the entry of final judgment were partially granted and partially denied. The court's decision mandates an injunction against Ripple to prevent future securities law violations and imposes a civil penalty amounting exactly to $125,035,150.
In this regard, Ripple CEO Brad Garlinghouse stated that the court reduced the $2 billion penalty sought by the SEC by 94%, recognizing that the SEC had “overplayed their hand.” Garlinghouse further stated, “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.”
Some crypto analysts are now predicting a major bull run for XRP following the court's ruling. One analyst, CrediBULL, argues that the stage is now set for an “inevitable mega run” for the XRP price, given that XRP was not classified as a security by the court.
Another analyst, known as “360 Trader” on social media platform X, also predicts a strong rally for XRP, arguing that the “chains are off” for the token and that the XRP price will “fly this cycle” with a target ranging between $4 and $8.
The XRP price has rallied significantly this year, rising over 200% from its 2023 low. The token's performance has outpaced other major cryptocurrencies, such as Bitcoin and Ethereum, which have risen around 50% and 100%, respectively, during the same period.
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