The U.S. Securities and Exchange Commission (SEC) has chimed into the final judgment in the Ripple case, emphasizing that the court recognized the “egregiousness” of Ripple’s conduct, the agency told Fox Business reporter Eleanor Terrett. District Judge Analisa Torres ruled that Ripple had committed serious securities law violations and ordered the company to pay a $125 million fine. While the SEC sought a much larger penalty of $2 billion, the final amount was significantly reduced.
But the story doesn’t end there. Ripple might be celebrating the partial win SEC may open its cards later. What it could be let’s uncover.
SEC’s Stance and Possible Appeal
Despite the reduction in penalties, the SEC may still consider appealing certain aspects of the case. While the agency is unlikely to challenge the recent order on remedies, it could take issue with the July 2023 summary judgment ruling, which classified secondary XRP sales as non-securities.
Ripple’s Perspective and Market Reaction
Though Ripple has framed the final judgment as a significant win, Terrett reveals that the fine was higher than the $10 million the company had hoped for. Even Marc Fagel highlights that the court’s penalty for Ripple was significantly higher than what Ripple argued for. Specifically, Ripple believed the appropriate penalty was much lower, but the court imposed a fine that was 1150% higher than Ripple’s suggested amount.
The SEC, however, sees the outcome as a partial victory. The news of the judgment triggered a substantial price rally for XRP, with its value surging by over 20% in just 24 hours. In South Korea, XRP even outpaced the daily trading volumes of major cryptocurrencies like Bitcoin, Ethereum, and Solana.
Is it Over Yet?
It remains uncertain whether Ripple’s legal battle with the SEC is truly over, as the agency might still appeal the recent ruling. Crypto legal experts, including lawyer Preston Byrne, suggest that an appeal is likely, with Byrne noting he hadn’t anticipated Ripple’s initial win. However, Ripple’s expansion into non-U.S. jurisdictions in recent years could lessen the impact of any potential new restrictions on its American operations if the SEC decides to appeal.
