Prices soar! Ripple wins again

A few days ago, Ripple achieved a partial victory in its three-year lawsuit against the U.S. Securities and Exchange Commission (SEC), resulting in a 26% surge in XRP prices.
The judge ruled that Ripple's sale of XRP to retail investors did not violate federal securities laws and reduced the SEC's penalty request by approximately 94%, from $2 billion to $125.035 million.
Since the SEC sued Ripple in December 2020, both parties have engaged in a lengthy legal battle, with Ripple continuously achieving partial successes through legal means, including a court ruling that XRP itself is not a security.

01

The History of Ripple and the SEC

Ripple's story began in 2004 when Canadian programmer Ryan Fugger launched RipplePay, a peer-to-peer payment system that predated blockchain technology by several years.
In 2011, cryptographer David Schwartz, Mt. Gox founder Jed McCaleb, and video game designer Arthur Britto jointly developed a more efficient system that did not require proof-of-work mining. This system eventually evolved into the XRP ledger and led to the establishment of Ripple Labs.
Over time, Ripple gradually attracted a large number of investors and partners. In 2013, Ripple raised $3.5 million, and in 2014, it formed partnerships with CBW Bank and Cross River Bank. In 2015, Ripple hired former Yahoo COO Brad Garlinghouse for its payment network and began promoting the XRP token.

On December 21, 2020, the SEC sued Ripple Labs and its executives, accusing them of conducting an unregistered securities offering. The SEC claimed that Ripple's actions in raising funds through the sale of its XRP tokens violated federal securities laws. Following this news, the price of XRP dropped from $0.58 to $0.21, and several cryptocurrency exchanges delisted XRP. Ripple CEO Brad Garlinghouse denied the SEC's allegations and stated that the company would fight back legally.
Since the SEC's lawsuit, both parties have engaged in a protracted legal battle. Ripple has continuously sought legal support and evidence to demonstrate that XRP does not fall under the category of securities.
------ Key Milestones
(1) March 2021: Judge Netburn's Ruling
In March 2021, Judge Sarah Netburn ruled that XRP has value and utility, distinguishing it from cryptocurrencies like Bitcoin. This ruling is significant as it emphasizes the legal differences between cryptocurrencies and paves the way for future classifications and enforcement actions.
(2) May 2021: Ripple's Counterattack
Ripple actively countered through legal means, arguing that the SEC failed to provide clear guidance, which prevented the company from complying with its requirements. Ripple's legal team emphasized the inconsistencies and lack of transparency in the SEC's regulation of cryptocurrencies.
(3) July 2023: Partial Support from Judge Torres
In July 2023, Judge Analisa Torres partially supported Ripple, ruling that XRP itself is not a security. This ruling marked a significant legal victory for Ripple, leading to a substantial increase in XRP prices. However, the SEC did not give up and continued to pursue legal action against Ripple.
(1) Coinbase Delists XRP
Following the SEC's lawsuit against Ripple, the cryptocurrency exchange Coinbase quickly delisted XRP. This move had a significant impact on the XRP market but also fueled Ripple's determination to strengthen its legal fight.
(2) Ripple's Legal Expenses
Ripple spent over $200 million in legal fees while responding to the SEC's allegations. This demonstrates Ripple's determination and financial support in combating the SEC, while also highlighting the importance and complexity of the case.
(3) International Cooperation and Expansion
Despite facing legal challenges, Ripple continued to advance its international expansion strategy, establishing partnerships with several financial institutions and partners. This indicates that Ripple remains committed to technological and market development beyond the legal battle.

Throughout the legal battle, Ripple has continuously achieved partial victories, which not only boosted market confidence in XRP but also provided valuable legal experience for the entire cryptocurrency industry.

02

Latest Settlement Developments

In March 2024, the SEC planned to request a $2 billion fine against Ripple Labs.
Ripple's Chief Legal Officer Stuart Alderoty stated that Ripple's response would be submitted next month. In May, the SEC described Ripple's proposed stablecoin as "unregistered crypto assets" in its revised relief measures response brief and insisted on imposing a nearly $2 billion penalty on Ripple.
However, the court ultimately ruled that the SEC's penalty request was excessive, reducing it by approximately 94% to only $125 million. This ruling represents a significant victory for Ripple and the entire cryptocurrency industry. Following the announcement of the ruling, the price of XRP surged, reaching a high of $0.6434, with a 24-hour increase of 19.7%.
Analysts noted that while a technical correction may occur in the future, this ruling significantly boosted market confidence, and the long-term outlook for XRP is promising.

Conclusion

The historical grievances between Ripple and the SEC, along with the latest settlement developments, have not only impacted XRP's market performance but also had a profound effect on the entire cryptocurrency industry. Ripple has demonstrated strong resilience in this legal battle and achieved partial victories.
In the future, as the regulatory environment becomes clearer, the cryptocurrency industry will encounter more development opportunities. Investors should closely monitor market trends, seize investment opportunities, and achieve wealth appreciation.