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The US Securities and Exchange Commission (SEC) has filed an appeal in the seemingly never-ending Ripple case.
Submitted yesterday, the filing challenges a July 2023 court ruling that partially dismissed claims against the company. In October, the SEC issued an initial notice of appeal Judge Analisa Torres's August ruling in which Ripple was fined $125 million. Garlinghouse described Toress's ruling as a "victory for Ripple."
The figure was just a sliver of what the Ripple community had potentially faced. Initially, the regulator sought $1 billion in disgorgement and prejudgment interest and $900 million in civil penalty.
Judge Torres ordered Ripple to pay $125 million in civil penalties and imposed an injunction against future securities law violations. Torres found that 1,278 institutional sale transactions by Ripple violated securities law.
The SEC’s latest filing represents a detailed effort to overturn the district court's decision. The agency also disputes the lower court’s exclusion of non-cash XRP distributions, such as those used for employee compensation and business incentives, from securities regulations.
These transactions meet the "investment of money" requirement under the Howey framework, according to the regulator.
In response to the latest filing, Ripple chief legal officer Stuart Alderoty said the appeal was "expected" but also "just noise."
"As expected, the SEC’s appeal brief is a rehash of already failed arguments –and likely to be abandoned by the next administration. We’ll respond formally in due time. For now, know this: the SEC’s lawsuit is just noise. A new era of pro-innovation regulation is coming, and Ripple is thriving," he said on X.
A ruling in the SEC's favor may embolden the agency to pursue similar enforcement actions, while a defeat could constrain its authority. A resolution in the appeals court is not expected until later this year, leaving the crypto industry in continued uncertainty.
Nonetheless, XRP continues on its surge. Up 7.8% over the past 24 hours, the now-third largest crypto by market cap is up 29% over the week and more than 426% over the year.