tl;dr
A California judge dropped all charges against Ripple, except one, in its legal battle with the SEC. The SEC reduced its proposed fine from $2 billion to $102.6 million. Ripple's XRP token price has not significantly changed despite the court ruling. The judge stated that Ripple did not violate US s...
A California judge has made a significant decision in the legal battle between Ripple and the SEC, dropping most charges against Ripple and reducing the proposed fine to $102.6 million, a substantial decrease from the initially sought $2 billion. However, the cryptocurrency market has not reacted as expected, with Ripple's XRP token showing a 4% decline since June 2023, despite the positive legal developments.
The ruling by Judge Phyllis J. Hamilton favored Ripple, asserting that the company did not violate US securities laws. This decision was driven by the judge's opinion that a reasonable investor would not have anticipated profits solely from general cryptocurrency market trends. Ripple's Chief Legal Officer, Stu Alderoty, emphasized that while some allegations have been dismissed, the company is prepared for the remaining trial, highlighting that the New York ruling affirming XRP as not a security remains valid.
On the SEC's side, they initially pursued a much higher fine, eventually settling on $102.6 million, citing a penalty-to-profit ratio in comparison to other similar cases. Additionally, the SEC faced internal challenges with the resignation of David Hirsh, the agency's Chief of the Crypto Asset and Cyber Unit.
Despite these legal and regulatory developments, XRP's market performance has not reflected positive sentiment, with a 3.55% decline in the past 24 hours and a 4.52% decrease since June 2023. This lackluster price action underscores the volatile and unpredictable nature of the cryptocurrency market, where even favorable regulatory rulings do not guarantee renewed investor confidence.