The U.S. Securities and Exchange Commission (SEC) has addressed District Judge Analisa Torres’ ruling in the Ripple case over XRP, emphasizing the substantial financial penalties imposed on the crypto firm and its ongoing securities law violations. While Ripple celebrated the 94% reduced fine, the regulator underscored that the court acknowledged Ripple’s securities violations.
SEC Addresses Final Court Ruling in Ripple Case, Highlights Key Outcomes
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SEC Reacts to Court Decision in Ripple- XRP Case
The U.S. Securities and Exchange Commission (SEC) has commented on the ruling by District Judge Analisa Torres in the case against Ripple Labs over XRP. Fox Business correspondent Eleanor Terrett shared the SEC’s comments after reaching out to the regulator on Thursday. The SEC spokesperson stated:
The court granted the SEC’s motion for remedies including an injunction barring Ripple from committing additional violations of the securities laws and significant civil monetary penalties totaling more than 12 times the amount Ripple suggested was appropriate.
On Wednesday, Judge Analisa Torres of the U.S. District Court ruled on the SEC’s motion against Ripple Labs, stemming from a 2020 lawsuit over unregistered XRP sales. The court granted some of the SEC’s requests, imposing a $125 million civil penalty and an injunction against further violations, but rejected the SEC’s demand for a $2 billion penalty. Ripple had argued for a penalty not exceeding $10 million. Ripple’s CEO, Brad Garlinghouse, hailed the 94% reduction in the SEC’s penalty as a victory for Ripple, the industry, and the rule of law, noting that the SEC’s challenges against the XRP community are now over.
“As the Court found, the fact that Ripple has shown a ‘willingness to push the boundaries of the [Court’s summary judgment] Order evinces a likelihood that it will eventually (if it has not already) cross the line.’ The Court also addressed ‘the egregiousness of Ripple’s conduct’ and noted that ‘there is no question that the recurrent, highly lucrative violation of Section 5 is a serious offense,'” the SEC spokesperson added, elaborating:
As court after court has stated, the securities laws apply when firms offer and sell investment contracts, regardless of the technology or labels that they use.
What do you think about the SEC’s response to the Ripple ruling in the XRP case and the penalties imposed? Let us know in the comments section below.
