Latest news with #SecondCircuit
Yahoo
a day ago
- Business
- Yahoo
Ripple's victory lap may be premature
Ripple's victory lap may be premature originally appeared on TheStreet. Aug. 7, 2025 would be counted among the most glorious days in the history of the crypto industry as the years-long legal battle involving the crypto payments firm Ripple Labs and the Securities and Exchange Commission (SEC) finally came to an end. Both the parties informed the Second Circuit Court of Appeals that they have dropped their appeals and cross-appeals of the landmark 2023 ruling in the case. XRP was trading at $3.32 at press time, up more than 8.5% in 24 hours. Let's unfold the iconic saga to get an overview of the most controversial legal case involving crypto assets. End of a saga It was during the first presidential term of Donald Trump that the SEC, under the leadership of Chair Jay Clayton, sued Ripple and two of its top executives, Brad Garlinghouse and Chris Larsen, in December 2020. The securities regulator alleged the crypto firm engaged in the sale of unregistered XRP securities to raise over $1.3 billion. Ripple argued XRP is a digital currency, not a case lingered for a few years until July 2023, when Judge Analisa Torres delivered a judgment that both parties claimed as a victory yet resented. The judgment said that though Ripple's programmatic sale of XRP tokens to retail traders didn't constitute a sale of securities, the firm's sale of those tokens to institutional clients violated securities laws. The SEC dropped its claims against Garlinghouse and Larsen in October 2023. Next, the court issued another major ruling in August 2024, slapping Ripple with a civil penalty of more than $125 million — the SEC had asked for a $2 billion penalty — and asking it to desist from further violations of securities laws. Consequently, both parties appealed the ruling — (i) Ripple hoping for a judgment that XRP is a digital currency, not a security at all, and even the institutional sale of XRP didn't violate any securities laws, and (ii) the SEC, now under Chair Gary Gensler, hoping for one that ruled the sale of XRP in both the scenarios to be violations of securities laws. The above rulings were delivered during the Joe Biden administration. But then, Trump returned to the White House in January 2025, and things began to take a 180 degree turn for Ripple and the broader crypto industry March, the SEC and Ripple dropped their appeals and filed a joint settlement in May. Both parties repeatedly requested Judge Torres to slash the penalty from more than $125 million to $50 million and vacate the injunction against further securities violations. Judge Torres has declined the request multiple times. In conclusion, the 2023 ruling remains intact: (i) XRP isn't a security when sold to retail customer via programmatic sales, (ii) XRP is a security when sold to institutional clients to raise funds, and (iii) Ripple is still required to pay the penalty of over $125 million. Regulatory status of XRP As discussed above, the programmatic sale of XRP to retail traders over crypto exchanges isn't a violation of securities laws. But an institutional sale can only go ahead after registration with the SEC under securities laws. The status is in line with the SEC's view during the Trump administration that most crypto assets aren't securities. However, there is one lone Democrat voice at the SEC who has consistently voiced her opposition to such Caroline Crenshaw has raised concerns over the SEC's evolving view of crypto's regulatory status. While the regulator is declaring all sorts of crypto assets aren't securities, yet there is no objection to the exchange-traded funds (ETFs) linked to crypto assets effectively asserting that these assets actually are securities, she asked. Crenshaw also objected to the settlement between the agency and Ripple for undermining the court order, the enforcement program, and the interests of the investors. What it cost CEO Brad Garlinghouse claimed in May 2023 that Ripple spent $200 million defending the case against the SEC. It's been more than two years since then, and the company must have spent much more by now. The crypto firm also made political donations worth millions of dollars. Ripple's chief legal officer Stuart Alderoty personally donated $300,000 in XRP to Trump's presidential campaign in June 2024. On the other hand, co-founder Chris Larsen donated more than $11.8 million to PACs supporting the Democratic Party's presidential candidate Kamala Harris. Once Trump won, Ripple Labs donated $5 million in XRP to his inaugural committee — one of the largest corporate donations to the company also donated millions of dollars to the Fairshake PAC that supports pro-crypto candidates. In fact, Garlinghouse admitted in an interview in December 2024 that if it weren't for the SEC's aggressive campaign against crypto, the PAC wouldn't even have existed in the first place. What now? Once Trump began his second term, the SEC not only softened its stance in regard to Ripple but also to the entire crypto industry. The regulator dropped its similar lawsuits against exchanges such as Coinbase (Nasdaq: COIN), Kraken, etc. The new SEC Chair Paul Atkins, appointed in April 2025, has vowed to enforce Trump's pro-crypto agenda. His view on most crypto assets not being securities isn't inconsistent with Judge Torres' 2023 ruling. But what about the regulatory status of crypto assets during institutional sales? But what about the regulatory status of crypto assets when they are tied to ETFs, as Commissioner Crenshaw pointed out? We still can't say there is absolutely no ambiguity regarding the status of crypto assets in the U.S. We will closely observe the SEC's guidelines and the court rulings in the future, as Trump has vowed to turn the U.S. into the crypto capital of the world. Ripple's victory lap may be premature first appeared on TheStreet on Aug 8, 2025 This story was originally reported by TheStreet on Aug 8, 2025, where it first appeared.
Yahoo
2 days ago
- Business
- Yahoo
SEC and Ripple case is officially over
SEC and Ripple case is officially over originally appeared on TheStreet. The years-long legal battle between the SEC and Ripple Labs is finally over. A new court filing dated August 7 shows that the U.S. Securities and Exchange Commission and Ripple Labs have both agreed to dismiss their appeals, officially ending one of the most closely watched crypto lawsuits in history. The filing officially ends the case. No further penalties or legal battles are expected 'All parties and counsel of record were served with copies of the foregoing document on the same date through the Court's ACMS system.' In a joint stipulation of dismissal filed with the U.S. Court of Appeals for the Second Circuit, both parties wrote: 'The Securities and Exchange Commission ('Commission'), Appellant-Cross-Appellee, Ripple Labs, Inc. ('Ripple'), Appellee-Cross-Appellant, Bradley Garlinghouse, Appellee, and Christian A. Larsen, Appellee, jointly stipulate to the dismissal of the Commission's appeal (No. 24-2648), and Ripple's cross-appeal (No. 24-2705), with each party to bear its own costs and fees.' The stipulation includes signatures from both sides' legal teams and was filed electronically through the Court's ACMS system by SEC appellate counsel Ezekiel L. marks the final chapter in a nearly four-year-long case that shook the crypto industry. How it started The SEC first sued Ripple Labs and two of its top executives, Brad Garlinghouse and Chris Larsen, on December 22, 2020, alleging the company conducted an unregistered securities offering by selling XRP. Ripple immediately pushed back, arguing XRP is a digital currency, not a security — and that the SEC failed to give fair notice that its token was in violation of securities laws. The case quickly became a battleground for the future of crypto regulation in the U.S., with Ripple gaining major community support and legal turning point In July 2023, U.S. District Judge Analisa Torres ruled that Ripple's programmatic sales of XRP on crypto exchanges did not constitute securities transactions — a landmark decision seen as a partial victory for Ripple. However, the court did find Ripple had violated securities laws in its direct institutional sales, allowing the SEC to proceed with further actions. This led to a back-and-forth over remedies and penalties, and the SEC soon filed an appeal — which Ripple responded to with a cross-appeal of its own. At the time of writing, XRP is up 9% in the last 24 hours, per Kraken's price feeds. SEC and Ripple case is officially over first appeared on TheStreet on Aug 7, 2025 This story was originally reported by TheStreet on Aug 7, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
SEC and Ripple End Appeals, Closing Landmark Crypto Case as XRP Soars
The U.S. Securities and Exchange Commission and Ripple Labs Inc. have formally closed their legal dispute, filing to end their respective appeals in the case over the sale of XRP tokens. In a joint filing dated Thursday with the U.S. Court of Appeals for the Second Circuit, the SEC withdrew its appeal and Ripple abandoned its cross-appeal, with each party agreeing to bear its own legal costs. The official end to the years-long dispute, finalizing a June agreement for Ripple to pay a $125 million civil penalty, coincided with a more than 10% jump in XRP over the past 24 hours to $3.31, according to CoinGecko. That penalty, placed in escrow, will be transferred to the U.S. Treasury following the dismissal of the appeals. A permanent injunction restricting Ripple's institutional sales of XRP remains in effect. The SEC sued Ripple in December 2020, alleging the company and two of its executives conducted an unregistered securities offering by selling XRP, the world's third-largest crypto by market capitalization. Ripple denied the allegations, arguing that XRP is not a security. In October 2023, the SEC dropped its claims against Ripple Chief Executive Brad Garlinghouse and Executive Chairman Chris Larsen, after a judge's partial ruling in the company's favor. Both men had been accused of aiding and abetting Ripple's alleged unregistered securities sales. Ripple to Boost Stablecoin, XRP Payment Services With $200 Million Rail Acquisition In 2023, U.S. District Judge Analisa Torres issued a split ruling, finding that some sales of XRP to institutional investors violated securities laws, but sales on public exchanges did not. That decision was hailed as a partial victory for the crypto industry, though it left Ripple liable for institutional sales. The conclusion of the appeals process leaves the 2023 ruling intact, cementing a precedent likely to influence how regulators and courts assess the classification of crypto going forward.
Wall Street Journal
4 days ago
- Business
- Wall Street Journal
Madoff Feeder Fund's $6 Billion Clawback Attempt Shut Down in Appeals Court
An appeals court has blocked liquidators' yearslong effort to recover about $6 billion from investors who cashed out of a Bernie Madoff feeder fund before the Ponzi scheme collapsed. The U.S. Court of Appeals for the Second Circuit ruled Tuesday that the liquidators of Fairfield Sentry, a British Virgin Islands-based investment vehicle that funneled client money to Madoff Investment Securities, can't claw back redemption payments.
Arab Times
23-07-2025
- Arab Times
Predator Lurking Near School Caught & Jailed, Kuwait Takes Strong Stand
KUWAIT CITY, July 23: The Second Circuit of the Court of Appeal, presided over by Judge Nasr Salem Al-Haid and including Judges Saud Al-Sanea and Tariq Metwally, has upheld a five-year hard labor prison sentence for a man convicted of repeatedly harassing and molesting female high school students. The defendant faced charges from the Public Prosecution for indecent assault, including inappropriate physical contact, persistent harassment, and attempting to lure a minor into immoral acts. The case came to light after he targeted a high school girl outside an association's branch, touching her without consent. Initially dismissing it as accidental, the victim realized his intent when he repeated the act and later pressured her to add him on Snapchat while making inappropriate advances. Upon learning of the incident, the victim's father filed a formal complaint. Surveillance footage revealed the accused loitering near the school branch, deliberately targeting schoolgirls in uniform (particularly high school students) before following and assaulting them. A police ambush led to his arrest, and during interrogation, he confessed to the crimes, admitting to an "obsession with harassing female students in school uniforms." While the Criminal Court initially sentenced him to five years of hard labor, the Court of Appeal dismissed appeals for a suspended sentence in its first hearing. In a subsequent session, the court affirmed the original ruling, citing the soundness of the lower court's decision and the inadequacy of the defendant's defense.
