Charted: Ripple's case closes
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Ripple, the company that created the cryptocurrency XRP (and still owns mountains of it), has received judgment in the case the SEC brought against it, and the market is interpreting it as a win.
Why it matters: The case over the creation and sale of XRP has proven to be a defining moment in the battle over which cryptocurrencies are, and are not, securities under U.S. law.
The latest: The judge in the case has ruled that Ripple should pay $125 million, which is far less than the SEC sought.
- The judge declined to order disgorgement of profits from sale and noted that there are no claims of fraud in the case.
- But the ruling found fault with the firm's offering of the token without properly registering with the agency. The company was ordered not to violate the Securities Act again.
What they're saying: An SEC spokesperson drew attention to multiple points in which the court agreed with the SEC's claims against the company and added that the ruling reaffirms court judgments that securities laws apply to companies "regardless of the technology or labels that they use."
- "We're glad to have this finally behind us," Ripple counsel Stuart Alderoty told Bloomberg, saying the company could pay the fine with cash on hand.
What we're watching: Whether or not the SEC appeals.
