XRP Case: SEC Veteran Breaks Silence on Ripple Win

As a seasoned researcher with over two decades of experience in the financial and legal sectors, I have witnessed countless regulatory battles between tech innovators and government agencies. The recent SEC vs. Ripple case is no exception, offering yet another perspective on the complex relationship between emerging technologies and established regulations.


At the end of the SEC’s legal action against Ripple, the company was penalized $125 million and prohibited from continuing any breaches of financial regulations. Generally speaking, Judge Torres’ decision is seen as expressing her worry about Ripple’s behavior within the industry and has imposed an order to stop any future violations.

The executives at Ripple, including CEO Brad Garlinghouse and CLO Stuart Alderoty, are pleased with the outcome. They believe the court’s decision is beneficial for the company and the broader crypto industry, as it dismissed the Securities and Exchange Commission’s more stringent demands of $2 billion.

In contrast, Marc Fagel, an experienced SEC professional and authority on securities law, offers a distinct perspective. He interprets the ruling less as a settlement and more as a judicial remedy tailored specifically for this case at hand. Fagel suggests that the SEC might consider appealing the decision to the court, but he acknowledges that no final decision has been made thus far.

In my study or analysis, I found that contrary to Ripple’s contention, the court imposed a fine that was more than 1150% greater than what Ripple considered reasonable.

— Marc Fagel (@Marc_Fagel) August 7, 2024

60 days

The Securities and Exchange Commission (SEC) has up to two months to consider if they should appeal the decision, providing them with time to strategize their next steps effectively. As Fagel points out, the issue surrounding programmatic sales remains a contentious topic and may shape the SEC’s future actions in this area.

Additionally, Fagel highlights the substantial financial penalty imposed on Ripple, which exceeded their initial request yet fell short of the SEC’s initial demand. In his opinion, this penalty ranks among the highest non-fraud-related fines seen in recent years.

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2024-08-08 14:26