SEC Is Going After Ripple: Appealing for $2 Billion
The U.S. Securities and Exchange Commission (SEC) has announced that it will appeal a federal judge’s ruling in its case against Ripple.
The SEC filed a “notice of appeal” two months after Judge Analisa Torres’ final ruling in its case with Ripple.
Last July, Judge Torres ruled that Ripple violated federal securities laws with its institutional sales of XRP, but said that sales to retail exchanges did not violate securities rules.
SEC Fails to Get Fine
In August, Judge Torres imposed a $125 million fine on Ripple. However, that amount did not satisfy the SEC, which had sought a $2 billion fine against Ripple.
“We believe that the district court decision in the Ripple case conflicts with decades of Supreme Court precedent and securities law, and we look forward to presenting our case to the Second Circuit Court of Appeals,” a spokesperson for the SEC said in a statement.
Ripple’s response
The first response from Ripple was the social media posts by CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty. Garlinghouse said, “[The SEC] lost, and on every issue that matters,” adding that Ripple, the crypto industry, and the rule of law have already prevailed, and that XRP’s non-security status was legally recognized today.
Alderoty called the appeal “disappointing but not surprising.” Alderoty believes the district court’s decision is difficult to overturn.
It is worth noting that the SEC has only filed a notice of appeal for now, and that a formal appeal could be filed in a few months.
Stay tuned for new information.
