The U.S. Securities and Exchange Commission (SEC) has weighed in on Judge Analisa Torres’ ruling in Ripple’s case over XRP, affirming the crypto company’s massive financial penalties and ongoing violations of securities law. While Ripple celebrated a 94% reduction in its fine, the regulator stressed that the court had acknowledged Ripple’s securities violations.
SEC Reacts to Court Ruling in Ripple-XRP Case
The U.S. Securities and Exchange Commission (SEC) has commented on Judge Analisa Torres’ ruling in the case against Ripple Labs over XRP. Fox Business reporter Eleanor Terrett shared the SEC’s comments after reaching out to the regulator on Thursday. An SEC spokesperson said:
The court granted the SEC’s request for relief including an injunction restraining Ripple from committing additional violations of securities laws and large civil monetary penalties totaling more than 12 times the amount Ripple proposed as appropriate.
On Wednesday, U.S. District Judge Analisa Torres ruled on the SEC’s motion against Ripple Labs, which stemmed from a 2020 lawsuit over unregistered XRP sales. The court granted some of the SEC’s requests, imposing a $125 million civil penalty and an injunction against further violations, but denied the SEC’s request for a $2 billion fine. Ripple had sought a fine of no more than $10 million. Ripple CEO Brad Garlinghouse hailed the 94% reduction in the SEC’s penalty as a victory for Ripple, the industry, and the rule of law, noting that the SEC’s challenges to the XRP community are now over.
“As the court found, the fact that Ripple demonstrated ‘a willingness to push the boundaries of [the court’s summary judgment] order suggests that it will eventually cross the line (if it has not already). The court also addressed the ‘egregiousness of Ripple’s conduct’ and noted that ‘there is no doubt that repeated and highly profitable violations of Section 5 constitute a serious crime,’” the SEC spokesperson added, explaining:
As court after court has stated, securities laws apply when companies offer and sell investment contracts, regardless of the technology or signals they use.
What do you think of the SEC’s response to Ripple’s ruling in the XRP case and the penalties imposed? Let us know in the comments section below.
