The long-running SEC vs. Ripple case, which began in 2020, finally concluded on August 7, 2024. Ripple was ordered to pay a $125 million fine, a small fraction of the over $1.3 billion initially sought by the SEC for unregistered securities sales.
Following the ruling, XRP’s price surged by over 20%, pushing it above $0.60 as it approached a significant resistance trend line. The case centered on Ripple’s sale of XRP tokens, which the SEC argued were illegal securities. While the court partially granted the SEC’s requests, it did not impose the full penalty originally demanded.
Judge Analisa Torres, who issued the ruling, stated that Ripple had violated securities laws but imposed a much-reduced penalty and prohibited future violations. Ripple CEO Brad Garlinghouse declared the outcome a victory, highlighting the significant reduction in the fine compared to the SEC’s initial demands.
Despite Ripple’s attempt to settle with a $10 million offer, the final penalty was higher, but still far below what the SEC had sought. The XRP price rise following the ruling broke through a key resistance level, suggesting potential further gains.
If XRP breaks out of its current symmetrical triangle pattern, analysts predict it could climb to between $0.95 and $1.02, completing a formation that has been developing since 2022.
Image Credit: Pixabay
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