Fix Ripple Wins, XRP Prices Fly!

XRP coin prices soared after Ripple's win against the SEC lawsuit. (Photo; Doc. Quartz)

JAKARTA - Ripple, a cross-border payment company and developer XRP can breathe a sigh of relief. The reason is, Ripple has just won a long feud against US regulators, the Securities and Exchange Commission (SEC).

Judge Analysis Torres has ordered Ripple Labs to pay a fine of 125 million US dollars (approximately IDR 2 trillion) for selling XRP tokens without appropriate registration. Although the fine is quite large, Ripple managed to reduce the financial burden much less than what was originally desired by the Securities and Exchange Commission (SEC), which nearly reached 2 billion US dollars (approximately IDR 32 trillion).

The case began in 2020 when the SEC accused Ripple of raising money through the unregistered sale of XRP, claiming that the digital token was a security. The agency then filed a lawsuit against Ripple in December 2020, which brought Ripple into serious legal challenges.

However, Judge Torres' decision on August 7 stated that Ripple's actions did not involve fraud. Therefore, this greatly affects the amount of the final fine. The ruling also prohibits Ripple from violating the Future Securities Act, ensuring compliance with securities laws. Indeed, this decision brings much clarity to the industry regarding regulatory attitudes towards digital tokens.

Reported by BeinCrypto, Brad Garlinghouse, CEO of Ripple, showed respect for the court's decision by reducing SEC demand by around 94%. He also expressed his relief that his company now has the clarity to continue developing its business.

"This is a victory for Ripple, industry and rule of law. The challenges of the SEC against the entire XRP community have been lost," Garlinghouse said via its X (Twitter) account.

Stuart Alderoty, Chief Legal Officer of Ripple, commented on the court's decision. He highlighted that the case contained no charges of fraud or intentional offenses, and no financial losses were reported.

"We respect the $125 million fine imposed by the Court for certain historical sales to experienced third parties," Alderoty said.

XRP Prices Immediately Rise

Following the court's decision, the price of XRP experienced a significant spike. Prices rose from $0.5018 (approximately Rp8,028) to $0.6373 (approximately Rp10,197), marking a 27% increase in just one and a half hours. At the time of writing, the price of XRP has stabilized and is currently trading at $0.6171 (approximately Rp9,873).

This decision is not only a big win for Ripple but also provides important guidance for the entire crypto industry in dealing with future regulations.