The prolonged legal dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has reached its finale. New York Judge Analisa Torres rejected a second joint settlement proposal, insisting on the original terms. Ripple CEO Brad Garlinghouse confirmed the company will drop its cross-appeal, accepting the court’s $125 million penalty and maintaining the permanent injunction against institutional XRP sales.
Key Developments in the Ripple-SEC Case
Judge Torres’ Decisive Ruling
Judge Torres dismissed a revised settlement that aimed to:
- Reduce Ripple’s penalty to $50 million
- Remove the permanent injunction on institutional XRP sales
She emphasized a "reasonable probability" of future securities law violations, citing Ripple’s past conduct. This stance solidified the original 2023 judgment, leaving the injunction intact.
Market Response to the Resolution
XRP price saw a modest 1.4% increase post-announcement, trading at ~$2.19. Key metrics:
- XRPUSDT 24h High: $2.2188
- Trading Volume: 232,882 (XRPUSDT) vs. 13,246 (XRPUSD)
The muted reaction suggests traders prioritized fundamental factors over legal clarity.
Ripple’s Business Implications
Permanent Injunction: A Long-Term Constraint
The upheld injunction restricts Ripple’s ability to sell XRP to institutions—a core revenue stream previously deemed an unregistered securities offering. While the lawsuit’s end reduces uncertainty, this legal limitation may reshape Ripple’s operational strategy.
👉 Explore how Ripple plans to adapt post-lawsuit
XRP vs. Other Altcoins: Performance Comparison
Solana (SOL) Outshines XRP
During the same period:
- SOLUSDT: +4% ($157.20)
- SOLBTC: +4.03% (0.00146880 BTC)
This divergence highlights XRP’s unique challenges, while broader altcoin rallies reflect market-wide bullish sentiment.
FAQs
Q: Why did Judge Torres reject the second settlement?
A: She deemed the $50 million penalty insufficient and upheld the injunction, citing risks of future violations.
Q: How does the injunction affect Ripple?
A: It permanently bars institutional XRP sales, limiting a key business segment.
Q: Why is XRP underperforming compared to SOL?
A: SOL benefits from positive market trends, while XRP’s growth hinges on post-lawsuit strategies.
Conclusion
The Ripple-SEC resolution closes a contentious chapter but introduces new challenges. With the injunction persisting, Ripple must innovate beyond legal battles to reignite investor confidence.