XRP, the cryptocurrency, saw its price dip after a US judge rejected a joint request by Ripple and the Securities and Exchange Commission (SEC) to lower Ripple’s hefty fine.
A Rejected Plea for a Smaller Fine
Ripple and the SEC had jointly asked Judge Analisa Torres to reduce Ripple’s $125 million fine to a mere $50 million. They argued that this was a reasonable compromise to end the lengthy legal battle. This wasn’t their first attempt; they’d made a similar request earlier, which was also denied.
Judge Torres wasn’t convinced. She stated that both Ripple and the SEC hadn’t adequately demonstrated the need to overturn the existing judgment. She emphasized that court decisions aren’t just for the parties involved; they impact the entire legal system and shouldn’t be easily changed.
The Background of the Lawsuit
The SEC initially sued Ripple in late 2020, alleging that the company sold XRP as an unregistered security. In 2023, Judge Torres ruled that some of Ripple’s XRP sales were indeed unregistered securities, while others weren’t. This led to the $125 million penalty, which both Ripple and the SEC appealed – the SEC initially arguing it was too low. The SEC’s stance softened after a change in leadership under the Trump administration, leading to the joint requests for a reduced fine.
Current Market Impact
At the time of writing, XRP is trading at $2.12, down over 3% in the last 24 hours. This price drop likely reflects the market’s reaction to the judge’s decision.