NAIROBI (CoinChapter.com) — The took a pivotal turn as Judge Analisa Torres ordered Ripple to pay $125 million in civil penalties, a fraction of the $2 billion originally sought by the SEC. Ripple celebrated this as a win, but the SEC highlighted the “egregiousness” of Ripple’s actions, suggesting that the legal battle may not be over.
The agency may appeal aspects of the case, keeping the crypto world on edge. The court’s ruling brought relief to Ripple, which has faced the SEC’s accusations since 2020. Ripple framed the outcome as a victory, noting the much-reduced fine.
However, the SEC, in its statement to Fox Business reporter Eleanor Terrett, emphasized that Ripple’s actions were serious enough to warrant close scrutiny. This could set the stage for the SEC to challenge the July 2023 ruling that declared secondary XRP sales as non-securities.
Potential Appeal and Ripple’s Next Moves
The Ripple vs. SEC case could have broader implications for the crypto industry. This is particularly true for how digital assets are classified under U.S. securities laws. Ripple secured a win with the reduced penalty. However, the SEC’s focus on Ripple’s conduct suggests an appeal is possible.
Legal experts, including Preston Byrne, believe the SEC may pursue further action. This case is crucial in shaping the regulatory landscape.
Ripple’s victory is tempered by the court’s decision to impose a fine higher than the $10 million Ripple proposed. Former SEC attorney Marc Fagel pointed out that the penalty was 1150% higher than Ripple’s suggestion. Despite this, XRP’s price surged in response to the news. Ripple’s expansion outside the U.S. might reduce the impact of future legal restrictions. This is especially true if the SEC moves forward with an appeal.
The final resolution of the Ripple vs. SEC lawsuit could influence U.S. regulation of other crypto firms. An appeal could extend the case well into 2025, shaping the future of digital assets. Ripple’s legal challenges may not be over, and the outcome could set important precedents for the entire crypto industry.
Political Pressure Mounts on Gensler
Beyond the courtroom, Gensler is facing growing political pressure, not just from Republicans but also from within his own party. Senior White House officials have reportedly engaged with cryptocurrency leaders to discuss industry concerns, facilitated by Representative Ro Khanna.
This initiative continues the Biden-Harris administration’s efforts to engage with the crypto sector.
In addition, Democrats have launched a “Crypto for Harris” initiative to help Vice President Kamala Harris gain support from the cryptocurrency community.
These efforts reflect a shift within the Democratic Party as they seek to balance regulatory concerns with fostering innovation in the crypto industry. This growing engagement suggests that Gensler’s approach may face challenges not only from the industry but also from within his own political ranks.
