US SEC files an appeal against a federal judge’s decision regarding the Ripple case
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The US Securities and Exchange Commission (SEC) decided to formally appeal the US federal judge’s decision regarding the Ripple case this Wednesday, October 2. While the judge ordered Ripple to pay a $125 million fine, the SEC does not seem to be pleased with the ruling.
US SEC Takes Ripple To Court Again To Challenge Federal Judge’s Ruling
The SEC’s case against Ripple has dragged on for four years, and the regulator is still not satisfied with the result, despite winning the case in the end. At one point, Ripple managed to get a small victory, but the final judgment by Judge Analisa Torres had the US securities regulator turn to the Second Circuit Court of Appeals, indicating its determination to challenge the judge’s ruling.
The agency’s notice of appeal is a formal filing in a superior court, and it is something that can be filed by a party involved in a lawsuit. After filing the document, the regulator also had to notify both the court and the opposing side of its decision to appeal.
The SEC’s main problem with Judge Torres’ ruling is that the penalty imposed on Ripple was too small. The judge ordered the blockchain company to pay a $125 million fine, which is a massive reduction of the $2 billion penalty that the SEC initially wanted, in the form of recovery and fines.
Commenting on the move, the SEC’s spokesperson said that the regulator believes that the district court’s decision in the Ripple matter conflicts with decades of Supreme Court precedent and securities laws. As a result, the SEC decided to make its case to the Second Circuit.
Ripple Responds By Saying That It Finds The SEC’s Move Disappointing
In response to the matter, Ripple’s Chief Legal Officer Stuart Alderoty said that the SEC’s appeal is disappointing, although not surprising. He also said that the regulator’s Enforcement Director, Gurbir Grewal, resigned only hours before the notice of appeal was filed.
Brad Garlinghouse, Ripple’s CEO, posted on X that if Gensler and the SEC were rational, they would have moved on from the Ripple case a long time ago. He pointed out that pursuing the matter further does not protect investors, instead it only damages the SEC’s own reputation and credibility.
Garlinghouse added that Ripple is ready to fight in court for as long as it is needed, but he also stressed that XRP was officially classified as a non-security asset, and that will not change regardless of where the SEC takes the case to.
