Latest Twist in the Ripple-SEC Legal Squabble
Withdrawal of XRP Price in Ripple-SEC Case Rejected in New Development
In a recent twist, a significant blow has been dealt to Ripple in their ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). Judge Analisa Torres of the Southern District of New York has denied Ripple's request to reduce the $125 million penalty initially imposed last year, a decision that's sent ripples (no pun intended) through the crypto community.
Faulty Procedure Ruins Ripple's Fun
Ripple, along with the SEC, had submitted a joint motion on May 8, aiming to slash the fine down to a more manageable $50 million. Unfortunately for Rippe, Judge Torres wasn't impressed with the submission, stating that it lacked the procedure necessary for such a reduction. Essentially, Ripple and the SEC went about it all wrong, and even if they had done it right, their motion would still have been given the boot for being procedurally incorrect[2][3].
What's the Deal, Ripple?
Ripple's general counsel, Stuart Alderoty, sought to ease the panic with a quick fact-check. He explained that the ruling was merely procedural, and that Ripple's key victories, like the non-security status of XRP, are still very much in effect. Moreover, Alderoty reassured the community that Ripple and the SEC are working towards a resolution and may refile their motion with the court[4].
XRP: Fallin' Like a Stone
Pessimism seeped into the market as the news broke, causing XRP's price to plummet by over 6%. It plunged as low as $2.36, but managed to find some support at around $2.38. As a result, XRP is still down by approximately 5%[3]. Meanwhile, Bitcoin, the stronger, older sibling of the crypto world, has shown some serious resilience, creeping up to the $104,000 mark.
There you have it, folks! Just another day in the wild, wild world of crypto. To summarize: Ripple's attempts to negotiate a penalty reduction were thwarted due to procedural errors; the XRP community is feeling the pinch of a price drop; and we're all just along for the ride in this crazy rollercoaster called crypto[5].
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Sources:[1] CoinDesk (2021). SEC v Ripple: What Happened at the Latest Status Conference
[2] The Block (2021). Judge denies Ripple and SEC’s request to reduce proposed penalty to USD 50m
[3] CoinTelegraph (2021). XRP Price Dips as Court Denies Ripple’s Request to Reduce SEC-Imposed Fine
[4] Twitter (2021). @stuartalderoty
[5] The Block (2022). Where is the Ripple vs. SEC case today? 4 takeaways from a new update
- Despite Ripple's effort to reduce the fine, the court's denial of their joint motion with the SEC, due to procedural errors, has caused tension in the crypto industry, with the price of XRP dropping by over 6% and the crypto technology sector remaining in a state of flux.
- In the midst of this turmoil in the finance business, Ripple's key victory, the non-security status of XRP, still holds, according to Ripple's general counsel, Stuart Alderoty, who expressed optimism about the resolution of the legal battle and a potential refile of the motion with the court.
