The court drastically reduced the amount that the SEC wanted Ripple to pay initially from $2 billion to $125 million, a major victory for the company in court.
Legal professionals are confident that the SEC may appeal the ruling that would declare XRP sales on secondary platforms non-securities to a higher court and continue the legal process.
After the ruling, XRP increased by more than 20% to prove how much the market can respond to legal changes in the cryptocurrency market.
In the legal battle between Ripple Labs and the SEC, new experts suggest the SEC might appeal the previous XRP sales ruling. The court decided that secondary market XRP sales aren't securities. The crypto industry is evaluating the SEC's potential moves and their impact.
https://twitter.com/Marc_Fagel/status/1821304225319796863 Ripple's Court Victory and Diminished Penalty
Ripple won a recent battle when U. S. District Judge Analisa Torres lowered the SEC’s initial penalty demand from $2 billion to $125 million. This is considered a triumph for Ripple because the penalty was significantly less than the SEC intended to impose. Ripple wanted to get off the hook with a fine as low as $10 million. Still, it received a much higher amount in the judgment, reflecting the court’s recognition of the seriousness of the alleged violations.
Nevertheless, this is not yet the end of the legal situation. Ripple management and CEO Brad Garlinghouse being optimistic but conservative, sets his sight on continued expansion across international regions. However, there is always the chance that the SEC will appeal the decision, thus keeping the uncertainty factor alive.
Possible Revision and Legal Consequences
Certain legal scholars, like Marc Fagel and Preston Byrne, have discussed the possibility of appeal. They think the SEC will not accept the summary judgment, as it now believes that secondary market sales of XRP do not fall under securities. While this aspect of the ruling could equally inform other cases, it would have major changes to the SEC’s enforcement strategies.
A representative of the SEC has stated that while the chance of an appeal of the remedies ruling remains low, the ‘‘summary judgment’’ result may be the next area of controversy. The decision now vests with the SEC, which has 60 days to file an appeal on the court's decision, and this has put the industry on the edge. The case's outcome has influenced the market significantly: the price of XRP increased by more than 20% in a day after the ruling.
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