The legal battle between Ripple and the SEC, ongoing for over three and a half years, is now approaching its final chapter. The Ripple v. SEC legal battle might be close to resolution as the court ordered Ripple to pay a $125 million fine, considerably less than the regulator initially demanded. Analysts believe that Ripple might soon repay this penalty in the coming days. However, the XRP community is unclear if the top regulator will appeal the August 7 partial victory as they have until October 6 to challenge the ruling.
Here’s When Ripple Might Pay Fine
On 8 August, a federal judge ruled that Ripple Labs must pay a civil penalty of just over $125 million, a decision marking a blow to the U.S. Securities and Exchange Commission (SEC), which had originally sought a penalty close to $2 billion. Ripple had argued for a maximum fine of $10 million.
Judge Analisa Torres ruled that the fine covers 1,278 transactions that violated securities laws. She rejected the SEC’s demand for Ripple to forfeit over $876 million in profits from XRP sales, along with $198 million in interest and an additional $876 million penalty.
Also read: Ripple’s Chief Legal Officer Slams SEC’s Use Of ‘Crypto Asset Securities’: ‘Stop Trying to Deceive Judges’
Ripple must pay its penalty within 30 days. Stuart Alderoty, Ripple’s general counsel, informed that the company could cover the payment with cash from its balance sheet, stating, “We’re glad to have this finally behind us.”
We might see Ripple paying off its fine within this week. Last week, rumors circulated that XRP had already settled the $125 million fine with the SEC. The source, an influencer with over 200,000 followers on X (formerly Twitter) and a XRP advocate, also teased a major announcement for next week.
Will The SEC Appeal?
Since the ruling, the SEC has not officially commented on whether it will appeal the decision, though there is growing concern about a potential appeal. Analysts suggest that the regulator may challenge the July 23 ruling, which determined that XRP was not a security when sold to secondary investors.
In her July 2023 decision, Judge Torres found that XRP itself is not a security. However, she ruled that Ripple’s sales of XRP to institutional investors were indeed unregistered securities offerings.
Read more: Ripple News: XRP Whales Panic and Dump Ahead of $125M SEC Settlement
As uncertainty grows, Ripple’s Chief Legal Officer, Stuart Alderoty, remains bullish that an appeal won’t significantly alter the case’s outcome. He believes the SEC has only a 10% chance of overturning the case through an appeal.
Alderoty noted that historically low success rates in the Second Circuit suggest that the appeal could be futile right from the start. He also mentioned that Judge Torres’s thorough examination of the case leaves little room for the SEC to introduce new arguments during the appeals process.
As of writing, with only 32 days left to file an appeal, the XRP community is hopeful that the SEC will not prolong the legal battle.
