The long-term legal battle between Ripple and the US Securities and Exchange Commission (SEC) ended (at least for now) after the recent ruling by Judge Analisa Torres, who imposed a $125 million fine on the crypto company. The verdict will have a huge impact on both parties, with an appeal from both sides also planned.

What’s Next for Ripple and the SEC?

Ripple must pay the SEC a $125 million fine for violating securities laws. The violation stemmed from the company selling XRP to institutional investors without first registering those transactions as investment contractsLast year, Judge Torres ruled that Ripple had violated securities laws through its institutional sales, though she stated that XRP itself is not a security.

Based on the rulings, this case, which began in December 2020, is more of a victory for Ripple than for the SEC. While Ripple must pay the SEC $125 million, the fine is well below the $2 billion the SEC Commission initially proposedRipple proposed a $10 million fine, but the crypto company will have no problem paying the $125 million.

During a interview with CNBC, Chief Legal Officer (CLO) of Ripple Stuart Alderoty indicated that his company plans to pay the $125 million and continue with their business as soon as possible. The court order requires Ripple to pay this fine within thirty days. However, Alderoty did not specify when exactly the payment would be made, other than confirming that it would be made from their balance sheet.

In addition to the $125 million fine, it’s worth noting that Judge Torres also issued an injunction against future violations. Like the civil fine, this injunction is considered straightforward and doesn’t pose a problem for Ripple, as Alderoty described it as an “obey the law injunction.”

Patrick Daugherty of Foley and Lardner marked how the cease and desist order did not provide “real guidance” to Ripple, as Judge Torres did not determine whether Ripple had violated securities laws with its On-Demand Liquidity (ODL) serviceThe judge only found that the ODL service may come close to violating federal securities laws.

Appeal is still possible

An appeal is still possible, as either party can do so within 60 days of the publication of the ruling. Ripple’s appeal will likely border on the ruling regarding its institutional sales, while the SEC’s Appeal will border on Judge Torres’ ruling on Secondary Sales of RippleAlderoty indicated that Ripple has no plans to appeal, as he stated that the company considers Judge Torres’ recent ruling as the final decision in the case.

Ripple’s CEO Brad Garlinghouse also seemed pleased with the verdict, based on an X (formerly Twitter) after which he subsequently made, which he described as a “victory for Ripple, the industry, and the rule of law.” On the other hand, the Statement from the SEC After the ruling, the Commission indicated that it does not intend to appeal.

Interestingly enough, Alderoty noted that there would be no appeal if the SEC is a “rational actor” and if this administration is serious about hitting the “reset” button on crypto. However, an attorney who spoke to CoinDesk is confident the Commission will appeal Judge Torres’ ruling that secondary sales are not investment contacts, which sets a “bad precedent” for the regulator.

Main image created with Dall.E, chart from Tradingview.com