Key Takeaways:
- SEC Chair and Commissioner react to Ripple’s case being settled.
- Both the SEC Chair and Commissioner advocate for developing clearer regulatory frameworks.
- Ripple was imposed a fine of $125 million and a ban on unregistered XRP sales to institutions.
The long and contentious legal battle between the Securities and Exchange Commission (SEC) and Ripple Labs (XRP) finally settled last week. Both parties had filed a joint stipulation to dismiss their respective appeals. But, eventually, Ripple was fined $125,035,150 in civil penalties, and the court ruling completely barred them from selling XRP to institutions in the United States without registering with the SEC first.
Following the judgment, both the SEC Chair Paul Atkins and Commissioner Hester Peirce, also popularly known as “Crypto Mom,” reacted to the announcement. SEC Chair Atkins responded to Commissioner Peirce’s tweet, encouraging the development of relevant regulations for the industry.
The SEC Commissioner Peirce tweeted that, as the case was laid to rest, it is a “welcome development for many reasons.” Commissioner Peirce emphasized that now that the case has been settled and the brainpower occupied with the litigation can finally work on creating a clear regulatory framework for the entire crypto industry.
The SEC Chair, Atkins, responded to Peirce’s tweet, showcasing positive sentiment for the entire crypto industry. The SEC Chair also emphasized that their efforts should now be focused on drafting regulatory frameworks. In response to the chairman’s comments, Stuart Alderoty, Chief Legal Officer at Ripple, expressed appreciation for the new leadership’s emphasis on establishing clear regulations for the sector.
Following the tweets from the SEC Chair and Commissioner, XRP’s price has declined. According to CoinMarketCap, XRP has fallen by more than 5% in a single day, recovering around 2.5% at the time of writing, trading at $3,21.
The court’s final judgment includes a $125 million fine on Ripple for its direct institutional sales of XRP and a permanent ban against such unregistered sales in the U.S., which will also remain in full effect. The SEC announced that the agency will now receive the fine that was previously kept in an escrow account.
