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The U.S. Securities and Exchange Commission (SEC) has announced it will not appeal the recent court ruling in the Ripple XRP case. The decision, which followed Judge Torres’ order on August 7, 2023, marks a significant moment in the ongoing legal struggle between the SEC and Ripple.
The court’s ruling, which imposed a $125 million penalty on Ripple, was far less severe than the SEC’s initial $2 billion demand. This move has left many wondering about whether the SEC appeal this ruling again.
SEC Drops Appeal on Ripple Case
In response to the recent court ruling against Ripple, FOX Business journalist Eleanor Terrett reached out to the U.S. Securities and Exchange Commission (SEC) for comment.
An SEC spokeswoman highlighted that the court imposed significant measures, including an order to stop Ripple from breaking securities laws again, and fines that are over 12 times what Ripple originally suggested, which was $10 million.
The SEC also pointed out the seriousness of Ripple’s repeated violations of Section 5, emphasizing that the securities laws apply to all firms offering and selling investment contracts, regardless of the technology or labels they use.
Perhaps, both Ripple and the SEC seem to feel they achieved a favorable outcome. Ripple is satisfied because the fine imposed is much lower than the SEC’s initial suggestion of $2 billion. On the other hand, the SEC is pleased with the significant penalties and the court’s agreement that Ripple violated securities laws.
Judge Torres’ Ruling: A Win for Ripple
Meanwhile, Ripple’s leadership celebrated the ruling, with CEO Brad Garlinghouse viewing it as a victory for the rule of law.
The SEC asked for $2B, and the Court reduced their demand by ~94% recognizing that they had overplayed their hand. We respect the Court’s decision and have clarity to continue growing our company.This is a victory for Ripple, the industry and the rule of law. The SEC’s…
— Brad Garlinghouse (@bgarlinghouse) August 7, 2024
Ripple’s Chief Legal Officer, Stuart Alderoty, appreciated the court’s rejection of the SEC’s high financial demands and noted that there were no allegations of fraud or financial harm. Following the announcement, XRP’s price rose above $0.60, signaling positive sentiment in the market.
Future Considerations
FOX Business journalist Eleanor Terrett suggested that it is unlikely either side will appeal the remedies ruling. However, the SEC may still consider appealing the July 2023 decision now that a final judgment has been made.
With the SEC’s decision not to appeal, Ripple is poised to move forward and capitalize on the legal clarity provided by the court’s ruling.
