SEC Moves to Challenge Ripple Case Ruling in Appeal to Second Circuit Court

The U.S. Securities and Exchange Commission (SEC) revealed on Wednesday its intention to challenge a federal judge's decision in the ongoing case against Ripple.

The agency submitted a “notice of appeal” to the Second Circuit Court of Appeals, nearly two months after Judge Analisa Torres issued her final ruling in this four-year-old litigation.

In July 2023, the judge determined that Ripple’s institutional sales of XRP breached federal securities law, while its programmatic sales to retail exchanges did not constitute securities violations. Although the SEC sought to file an interlocutory appeal regarding the summary judgment, the request was denied by the judge.

In August, Judge Torres imposed a fine of $125 million on Ripple, significantly lower than the nearly $2 billion the SEC had sought in disgorgement, interest, and civil penalties. The enforcement of this fine has been stayed until the SEC’s appeal deadline passes or the appellate court resolves the matter.

READ MORE: Robinhood Introduces Crypto Transfers in Europe

An SEC spokesperson stated that the agency believes the district court’s ruling in this case contradicts established Supreme Court precedents and securities regulations, expressing eagerness to present its arguments to the Second Circuit. Ripple has not yet commented on the situation.

In a prior interview, Ripple’s Chief Legal Officer expressed skepticism about the SEC’s chances of success in an appeal, advising stakeholders to remain calm. Notably, while the SEC has filed a notice of appeal, it has yet to initiate the actual appeal process, which can take time in similar cases.