SEC appeals Ripple case ruling, citing conflict with Supreme Court precedent
Quick Take
- The Securities and Exchange Commission is appealing a previous judgment regarding the web3 payments firm Ripple.
- “We believe that the district court decision in the Ripple matter conflicts with decades of Supreme Court precedent and securities law,” an SEC spokesperson said.
The Securities and Exchange Commission is appealing an earlier judgment from the United States Court of Appeals for the Second Circuit regarding the web3 payments firm Ripple, according to a Wednesday filing.
“We believe that the district court decision in the Ripple matter conflicts with decades of Supreme Court precedent and securities laws and look forward to making our case to the Second Circuit," an SEC spokesperson told The Block.
Regarding the appeal, Ripple CEO Brad Garlinghouse wrote on the social media platform X, "Somehow, they still haven't gotten the message: they lost on everything that matters. Ripple, the crypto industry, and the rule of law have already prevailed. While we'll fight in court for as long as we need, let's be clear: XRP’s status as a non-security is the law of the land today — and that does not change even in the face of this misguided — and infuriating — appeal."
A judge ordered Ripple to pay a civil penalty of $125 million on Aug. 7, well below the SEC's initial request of a $2 billion penalty. The decision also partially granted and denied the SEC's initial motion for remedies regarding Ripple's sale of the token XRP.
On July 13, 2023, the same judge ruled that while Ripple’s programmatic sales of XRP did not violate securities laws, direct XRP sales to institutional investors acted as securities, The Block previously reported.
The SEC sued Ripple in 2020, claiming that Ripple's sale of XRP violated securities laws as the asset is an unregistered security and that the firm brought in over $1.3 billion via unregistered securities sales.
Updated: Oct. 2 at 22:12 UTC to include commentary from Brad Garlinghouse, context from July 2023 Ripple verdict
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