SEC to Appeal Disgorgement Decision in the Ongoing Ripple Case

A leading legal expert has shared insights into the Securities and Exchange Commission's (SEC) anticipated appeal in the ongoing Ripple case.

A legal expert has provided insights into the Securities and Exchange Commission’s (SEC) anticipated appeal in the ongoing Ripple case.

Attorney Fred Rispoli outlined the key areas the SEC is expected to challenge, with a focus on the court’s decisions regarding programmatic sales and other distributions of Ripple's native token, XRP.

The SEC is also expected to appeal the disgorgement decision, where Judge Analisa Torres significantly reduced the penalty from the SEC's initial request of $2 billion to $125 million.

The SEC will likely argue that this penalty is insufficient given the scale of the violations it has accused Ripple of committing.

Meanwhile, Ripple’s Chief Legal Officer, Stuart Alderoty, expressed confidence that Ripple will prevail in this next stage of the legal battle.

Alderoty stated that Ripple is prepared for the SEC’s appeal, and he looks forward to the federal court of appeals finally ending Gensler’s misguided attempt to target the crypto industry.

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According to Rispoli, the SEC is expected to challenge not only the amount of the penalty but also the court’s conclusions on Ripple’s programmatic sales of XRP and other distributions.

The agency's Form C, due to be filed by Thursday, is expected to provide initial details on the focus of its appeal.

In the subsequent opening brief, the SEC will present more comprehensive arguments to back its challenge of the court’s decisions.

Although Ripple’s executives have previously asserted that the legal status of XRP is settled and will remain unchanged by the appeal, Rispoli believes the SEC might attempt to revisit this issue.

He is confident that the SEC will not succeed in overturning the decision that XRP is not a security, but he cautions that the agency may include arguments on this matter in its appellate brief.

Ripple's legal team has consistently maintained that XRP's status is not at risk in the appeal, which aligns with the initial court ruling that found XRP to be a digital asset and not a security.

This ruling has provided Ripple with significant leeway as it aims to move forward with its operations, even as the broader crypto industry faces ongoing regulatory oversight.

As the SEC continues its aggressive pursuit of regulatory oversight in the cryptocurrency space, this case remains a critical precedent for the industry at large.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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