Ripple vs SEC: Ripple Escapes $2B Fine—But Is the Legal Battle Really Over?

NAIROBI (CoinChapter.com) — The Ripple vs SEC case reached a pivotal moment, with a federal judge ordering Ripple to pay $125 million, far less than the $2 billion initially sought by the SEC. This ruling concludes nearly four years of litigation that began in Dec. 2020.

The court found Ripple violated federal securities laws in direct sales of XRP to institutional clients but did not breach the law in sales to exchanges where XRP was available to retail investors.

Ripple’s Legal Chief Anticipates SEC Appeal

Ripple’s Chief Legal Officer, Stuart Alderoty, suggested that the SEC might appeal the ruling in the Ripple vs. SEC case, but he remains confident in Ripple’s position.

He emphasized that the court has already established that XRP is not a security and that trading XRP on secondary markets does not violate securities laws. Alderoty pointed out that even if the SEC appeals, these key rulings will not change.

Alderoty also noted that the chances of the SEC securing a decisive win are slim. He highlighted that the Court of Appeals reverses initial rulings in less than 10% of cases. Given the thoroughness of Judge Torres’ decision, Alderoty is confident that any appeal would be challenging for the SEC.

“If I were advising the SEC, I would recommend they do not appeal,” he stated.

What Lies Ahead in the Case?

Ripple’s legal battle with the SEC may extend if the SEC appeals. Alderoty questioned the SEC’s approach, arguing the agency should focus on investor protection rather than cases without harm. He noted the broader impact of Ripple’s victory, particularly on ongoing cases against Coinbase and Binance.

Despite the favorable ruling in the Ripple vs SEC lawsuit, the threat of an appeal persists, potentially extending the legal conflict. Ripple’s legal team is confident that any appeal would likely fail, with the ruling already setting a precedent for XRP’s status.

As Ripple expands globally with new offices in Geneva and plans for growth in Singapore and Dubai, the company remains cautious. The legal victory sets a precedent, but uncertainty around U.S. regulations continues to pose challenges for Ripple.