- Ripple could be subject to an SEC injunction which would disrupt expansion plans.
- The entire cryptocurrency market is expected to be affected by a major court decision regarding Ripple’s remedy.
Ripple is about to face a legal battle with the United States Securities and Exchange Commission. According to a recent CNF report, a court ruling on the final penalty Ripple expects to sell XRP institutionally in the third quarter 2024.
The decision could result in a heavy penalty or an injunction, if Ripple was found to be violating US securities law after the 2020 complaint.
Market Stability amid Legal Uncertainty
Despite the looming court decisionRipple’s XRP price has remained at $0.51. In addition, the company announced its plans to expand services in Africa.
SEC requested a fine of $2 Billion and an order that Ripple be prohibited from selling XRP institutional investors. An injunction of this kind could severely hinder Ripple’s expansion plans, especially on the US markets.
Ripple and the Defense of Critical Decisions
According to a Binance report, Ripple’s legal fight with the SEC is reaching a crucial point. Ripple’s operations in the future and regulatory framework for digital assets could be significantly affected by the court’s decision. These are the key elements of this case.
- Possible Legal Precedents: If Ripple wins, it could set a precedent that encourages innovation in digital assets. On the other hand, a ruling in favour of the SEC would increase the regulatory scrutiny in the crypto sector.
- Financial Stakes: Ripple has been sued for $2 billion by the SEC, which includes penalties and disgorgement. The lawsuit is high-stakes, as the SEC wants to recover both the penalty money from Ripple.
- Ripple’s Counterarguments: Ripple claims that the damages were not enough to justify disgorgement. It suggests a penalty maximum of $10 million citing the lack of fraudulent or reckless conduct.
The Market Impact of Legal Battle
The protracted legal battle between Ripple and the SEC has negatively impacted XRP’s market price. CNF has just released a new update that shows Ripple’s XRP currently trades at $0.4952Reflecting a decrease in 0.46% Over the last day 4.62% The past seven days have been a busy one.
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Source: www.crypto-news-flash.com