Ripple Secinination: $ 50 million fine without admission of guilt
The US Securities and Exchange Commission (SEC) announced an agreement with Ripple Labs Inc. as well as the Bradley Garlinghouse and Christian A. Larsen executives. The supervisory authority is finally setting the years of legal dispute with the XRP founder team.
This agreement ends the legal dispute that has been pending since December 2020. As part of the agreement, Ripple will pay a fine of $ 50 million, but without admitting misconduct, as from a message from the Sec emerges.
Background of the SEC lawsuit
The Sec had Ripple and its managers accusedTo have sold XRP as a non-registered security, which violates the US laws of securities. This legal dispute was of considerable importance because it had far -reaching effects on the regulation of cryptocurrencies in the United States. The question was particularly controversial whether XRP should be classified as security, which would have resulted in consequences for other cryptocurrencies.
As part of the agreement, Ripple undertook to pay a fine of $ 50 million. Neither Ripple nor the two executives Garlinghouse and Larsen admitted misconduct. The SEC said that the agreement was in the best interest of investors and financial markets. The agreement had no precedent between other crypto companies and each case would be checked individually.
The SEC also emphasized that the agreement was not to be understood as a confirmation of the law of XRP or other cryptocurrencies. The authority continues to reserve the right to proceed against companies that violate the securities laws.
Effects on the industry
The agreement between the Sec and Ripple is viewed as a significant step in the regulation of cryptocurrencies in the United States. It could serve as a model for future cases and possibly lead to a clearer legal classification of cryptocurrencies. However, it remains to be seen how this agreement will affect ongoing and future procedures.
Obviously, a general rethinking in the authority has been in office since Trump. In March, the SEC made almost all lawsuits against crypto companies, As cvj.ch reported. The case with Ripple was one of the last outstanding. The price of the XRP cryptocurrency did not react immediately and currently acts at $ 2.36.
