Attorney Fred Rispoli suggests that Ripple could end up paying the entire $125 million penalty as the SEC postpones its decisions, potentially waiting for new leadership. The lawsuit, initiated in December 2020, arises from the SEC’s assertion that Ripple engaged in an unregistered securities offering. Legal analysts indicate that the lengthy legal struggle between Ripple Labs and the SEC might result in the $125 million ruling against Ripple being upheld. Rispoli points out that the SEC may be stalling for a final verdict until Paul Atkins assumes leadership. Mark Uyeda is currently serving as the Interim Chair of the SEC, taking over from Gary Gensler as the top official at the agency. As mentioned in an earlier report, the SEC has already dropped lawsuits involving Uniswap, Kraken, Coinbase, and ConsenSys related to cryptocurrency, but there are no indications that the agency will abandon its ongoing case against Ripple. It has also created a specific task force for cryptocurrencies, focusing on promoting innovation and maintaining responsibility. Initiated by SEC Commissioner Hester Peirce in January, this effort indicates a more equitable regulatory stance towards the cryptocurrency sector. On August 7, 2024, Judge Analisa Torres from the U.S. District Court for the Southern District of New York issued a ruling that contained both favorable and unfavorable elements. She concluded that Ripple’s institutional XRP sales were considered securities transactions, but its sales to retail investors were not. As a result, Ripple was penalized $125 million for its institutional sales, which is considerably less than the $2 billion that the SEC had aimed for. Fred Rispoli remarked, “Indeed, I believe there are likely substantial conversations regarding the possibility of reducing or eliminating this penalty.” XRP: A Possible Solution for Settlements.
Ripple compared to. SEC: Is there a possibility that the lawsuit could conclude with a $125 million ruling?
