Ripple vs SEC Case Reaches Pivotal Moment as Judge Orders $125M Payment, SEC Appeal Anticipated

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

A federal judge has ordered Ripple to pay $125 million for violating federal securities laws in direct sales of XRP to institutional clients. However, the court found that Ripple did not breach the law in sales to exchanges where XRP was available to retail investors.

This ruling comes after nearly four years of litigation between Ripple and the SEC, which began in Dec. 2020. The SEC had initially sought $2 billion from Ripple in the case.

Ripple’s Chief Legal Officer, Stuart Alderoty, anticipates that the SEC may appeal the ruling. However, he is confident in Ripple’s position, highlighting that the court has already established that XRP is not a security and that trading XRP on secondary markets does not violate securities laws. He adds that even if the SEC appeals, these key rulings will not change.

Alderoty also points out that the SEC has a low chance of securing a decisive win, as the Court of Appeals reverses initial rulings in less than 10% of cases. Given the thoroughness of Judge Torres’ decision, he believes that any appeal would be challenging for the SEC.

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

If the SEC does appeal, Ripple’s legal battle will continue. Alderoty questions the SEC’s approach, arguing that the agency should focus on cases with investor harm rather than cases without it. He also notes the broader impact of Ripple’s victory, especially on pending 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.

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