Will the SEC’s Last Minute Tactic Work Against Ripple?

The SEC v. Ripple court case has been going on for years now, but the SEC is not backing down from the fight  or preparing to give in even this late in the game.

The US securities and Exchange Commission (SEC) filed what feels like a last-minute appeal in the case, asking that parts of a previous summary judgment be reversed. This would appeal a decision made by presiding Judge Analise Torres, who also made the earlier judgment.

In other words, they are asking the judge to repeal her own decision made back in 2023 where she ruled in favor (at least partly) of Ripple. The judgment there said that Ripple selling XRP to retail investors did not constitute a breach of US security law. These were sales that took place on digital exchange platforms.

There is no response yet from Judge Torres on that appeal, but we do expect one soon. There is good reason to close off this court case that has dragged on and cost both parties considerable money, but the SEC does not look to be letting go without a fight. The judge already ruled that Ripple would not have to pay the proposed $billion in fines that the SEC originally wanted. Instead, they would only have to pay $125 million in fines. If the judge permits the appeal, then the $2 billion in fines could be back on the table.

Repercussions for the Crypto Industry

The appeal has the effect of extending the length of the court case that did look like it would be wrapping up soon. It has the added effect of bringing down considerable criticism on the SEC from the crypto industry in general for taking action that may not be putting the concerns of US citizens first.

The appeal might not be allowed by Judge Torres, since the previous ruling found that Ripple’s transactions were not in violation of US securities law and did not constitute an investment contract.

If the appeal is permitted, though, then that could be disastrous for the cryptocurrency industry. It could mean that millions of transactions could be called in violation and could be suspect to fines, if the SEC intends to pursue those. This action also shows that the SEC is not backing down when it comes to this issue, despite the fact that the US does not have concrete laws in place defining cryptocurrency transactions. The case could also have the effect of forcing the US government’s hand in creating suitable laws, however.

XRP is still the #7 ranked crypto token and is down by 0.74% today to a price of $0.5465 (XRP/USD). The coin has gained just 1.22% over the last week during the recent crypto market bull run.