Ripple Labs filed a letter to stay a $125 million payment from an August 7 court ruling in its ongoing case with the US Securities and Exchange Commission (SEC). It proposed depositing 111% of the judgment, around $139 million, into a bank account until 30 days after appeal deadlines or resolution.
The commission has agreed to Rippleâs filed request to delay the payment past the September 6 deadline. This suggests that an appeal might be coming in. The long running case has again become a crucial moment in crypto regulation with the potential appeal adding another twist.
SEC consents to Rippleâs $125M fine delay
As per the latest filings, the court has put on a âSTAYâ over enforcement of the monetary portion of the Final Judgment. The stay imposed by the order will last until 30 days after the expiration of the time to appeal the Judgment with no appeal filed or the court of Appeals giving out a resolution on the appeal.
The court urged Ripple to deposit 111% of the penalty (around $139 million) into an interest-bearing account at Truist Bank, managed by its counsel. It added that the defendant shall retain ownership but has no control over the deposited amount. The court mentioned that the fund will only be released when both Ripple and the SEC mutually agree on its use or after further court orders or appeal outcomes.
The Proposed Order is below. pic.twitter.com/OD8mJnyEOk
â James K. Filan đșđžđźđȘ (@FilanLaw) September 4, 2024
Is an SEC appeal on the horizon?
Attorney Fred Rispoli suggested that the odds of an appeal have increased as Ripple filed a letter requesting a stay of the monetary portion and the SEC granted its consent to the request. He highlighted that an agreement over 111% of monetary judgment being locked does not give a guarantee that there will be an appeal.
He added that putting the proposed amount of around $139 million in a trust is not something that is done unless the SEC is being evasive to Ripple lawyers as to whether it intends to appeal. The attorney stated that it is still possible that there will be no appeal filled ahead but the odds have jumped certainly.
Rispoli hinted that there wonât be a ruling until 2026 if an appeal is being filed in the SEC vs Ripple case. However, the commission suing crypto linked exchanges and alleging multiple tokens as securities have lessened the sting dramatically.Â
He added:
To those freaking out over possible #SECvRipple appeal: Donât. There wonât be a ruling until 2026. SEC suing exchanges and alleging multiple tokens as securities has lessened the sting dramatically. If Ripple and/or #XRP donât make it now, itâs not because of the SECâs case.
â Fred Rispoli (@freddyriz)
Rippleâs native crypto, XRP, has experienced stagnated growth stagnated due to the legal actions proposed by the SEC. The recent positive developments allowed XRP to surge by around 25% in the last 60 days, outperforming Bitcoin (BTC). XRP is trading at an average price of $0.55, at the press time.
