According to CryptoPotato, the legal battle between Ripple and the US Securities and Exchange Commission (SEC), which began in late 2020, has seen a significant development. In early August, Judge Torres ruled that Ripple must pay a $125 million fine for violating certain securities laws. This amount is a 94% reduction from the $2 billion initially demanded by the SEC. While some view this decision as a major victory for Ripple and the conclusion of the case, others note that the SEC retains the right to appeal.

Stuart Alderoty, Ripple’s chief legal officer, suggested that an appeal from the SEC would not be surprising. However, he emphasized that the SEC cannot appeal some of the most crucial court rulings, such as XRP’s status as “not a security” and the secondary market trading of XRP as “not security transactions.” Alderoty estimated that the chances of the SEC securing a decisive win on appeal are slim, noting that the Court of Appeals reverses initial court rulings in less than 10% of cases. He expressed confidence that Judge Torres’ careful and thoughtful handling of the issues would make any appeal challenging for the SEC. Alderoty even recommended that the SEC should not appeal.

Ripple has expressed satisfaction with the court’s decision. Alderoty stated that the company will respect the magistrate’s ruling and pay the $125 million penalty from its balance sheet. Ripple’s CEO, Brad Garlinghouse, also indicated that the company would not appeal the fine. He claimed that the court recognized that the SEC had “overplayed their hand” and promised to abide by the rules. Garlinghouse described the outcome as a victory for Ripple, the industry, and the rule of law, asserting that the SEC’s opposition to the XRP community has been overcome.