In a surprising turn of events, the US Securities and Exchange Commission (SEC) has announced that it will not appeal the recent ruling by Judge Torres in the legal battle with Ripple. The case, which concluded on August 7, saw Ripple facing a civil penalty that was significantly lower than what the SEC had initially sought.

Judge Torres's decision imposed a $125 million civil penalty on Ripple for securities violations related to sales to institutions. Notably, the court decided against a disgorgement of funds, effectively negating the SEC's demand for approximately $2 billion in damages. Additionally, an injunction was put in place to prevent any further violations of Section 5 of the Securities Act.

While Ripple's executives wasted no time in celebrating the ruling as a victory, the SEC remained silent about their next steps. However, a statement obtained by FOX Business journalist Eleanor Terrett on Thursday suggests that the SEC's decision not to appeal could have significant implications for Ripple.

In the statement, the SEC highlighted that the court had granted their motion for remedies, including the injunction against Ripple and substantial civil monetary penalties. The agency expressed satisfaction that the court recognized the severity of Ripple's conduct, emphasizing that recurring and lucrative violations of Section 5 are a serious offense.

The SEC spokesperson further underlined that the securities laws apply to firms regardless of technology or labels used. This statement indicates the agency's support for its interpretation of securities laws and the penalties that were imposed in this case.

Ultimately, both parties perceive the outcome as favorable. Ripple celebrates the substantial reduction in fines, while the SEC underscores the court's agreement with their stance on securities laws and penalties.

FOX Business journalist Eleanor Terrett speculated that an appeal of the remedies ruling is unlikely from either side. Instead, she suggested that the SEC may consider appealing the previous ruling from July 2023, now that a final judgment has been reached.

Notably, Pro-XRP lawyer Fred Rispoli echoed Terrett's assessment, stating that the language used by both parties implies contentment with the ruling, rendering an appeal unnecessary.

Ripple's CEO Brad Garlinghouse and CLO Stuart Alderoty expressed their satisfaction with the ruling, emphasizing the court's rejection of the SEC's hefty demands. Garlinghouse celebrated the outcome as a victory for Ripple, the industry, and the rule of law, while Alderoty appreciated the court's dismissal of the SEC's "absurd" financial demands, particularly in the absence of fraud or financial harm allegations.

With the announcement of no appeal from the SEC, this case seems to have reached a significant milestone, bringing temporary relief to Ripple and shedding light on the interpretation and enforcement of securities laws within the crypto industry.