SEC Appeals Reduced USD 125 Million Penalty in Ripple XRP Case

The Securities and Exchange Commission (SEC) has appealed a court decision ordering Ripple Labs to pay a USD 125 million civil penalty in a long-running case involving its XRP token. This appeal is important because it has the potential to undermine the SEC’s regulatory jurisdiction over Bitcoin.

Ripple was accused in 2020 of allegedly selling XRP without first registering it as a security. A landmark decision this year concluded that XRP was only subject to securities rules when sold to institutional investors. The SEC claims the judgement contradicts previous precedents, while Ripple claims the lawsuit has already resulted in a triumph for the cryptocurrency industry.