The U.S. Securities and Exchange Commission (SEC) has indicated that it will not appeal Judge Torres’ ruling on Wednesday in the legal battle with Ripple. The case was settled on August 7, with the company facing a civil penalty that was significantly less than the SEC originally sought.

Judge Torres’ decision imposed a $125 million civil penalty for securities violations related to sales to institutions, along with a $0 disgorgement. This is in stark contrast to the approximately $2 billion in damages initially sought by the SEC. Additionally, an injunction was imposed to prevent further violations of Section 5 of the Securities Act.

SEC Breaks Silence on Ripple Ruling

While Ripple executives commented directly on the ruling via X, celebrating it as a victory, the U.S. agency remained silent. However, FOX Business journalist Eleanor Terrett reached out to the SEC on Thursday and obtained a statement that could mean big news for Ripple.

The SEC said: “The Court granted the SEC’s request for remedies, including an injunction prohibiting Ripple from committing additional violations of the securities laws and significant civil monetary penalties totaling more than 12 times the amount Ripple proposed as appropriate. As the Court found, the fact that Ripple has demonstrated a ‘willingness to push the boundaries of the (summary court’s) Order demonstrates that it is likely that it will eventually (if it has not already) push the boundaries.'”

Furthermore, the US agency expressed satisfaction that the court also recognized “the shameful nature of Ripple’s conduct” and acknowledged that “there is no doubt that the recurring, highly lucrative violation of Section 5 is a serious offense.” The SEC spokeswoman continued: “As court after court has held, the securities laws apply when companies offer and sell investment contracts, regardless of the technology or labels they use.”

No appeal possible?

Both sides seem to view the outcome as favorable. Ripple celebrates the drastic reduction in fines, while the SEC emphasizes the court’s support for its interpretation of securities laws and the penalties imposed.

Based on this, Terrett speculated: “I think an appeal of the ruling from either side is unlikely. I think it’s more likely that the SEC will appeal the July 2023 ruling now that the final judgment has been rendered. But I say that while wearing my ‘I’m not a lawyer’ shirt.”

XRP advocate Fred Rispoli agreed with Terrett’s assessment, commenting via X: “This language from both sides is exactly what you typically see from parties who are satisfied with the ruling and do not wish to appeal.”

Ripple CEO Brad Garlinghouse and CLO Stuart Alderoty expressed their satisfaction with the ruling on Wednesday. Garlinghouse highlighted the court’s rejection of the SEC’s hefty demands and hailed the outcome as a “victory for Ripple, the industry, and the rule of law.” Alderoty stressed the absence of allegations of fraud or financial harm in the case and appreciated the court’s rejection of the SEC’s “absurd” financial demands.

At the time of writing, XRP was trading at $0.6046.

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