Important Ripple v. SEC Lawsuit Update September 5th
TL;DR
- Ripple requested a delay in paying a $125 million fine, with the SEC agreeing to the proposed terms, leading to speculation about a possible appeal.
- The legal developments have had minimal impact on XRP’s price, which keeps trading at around $0.55.
The Latest Update
The legal battle between Ripple and the US Securities and Exchange Commission (SEC) reached a major milestone at the start of August. Back then, Judge Torres ordered the company to pay a $125 million fine for violating certain securities laws, which represented just a fraction of the regulator’s initial demand for $2 billion.
Some of Ripple’s executives, such as CEO Brian Garlinghouse and CLO Stuart Alderoty, seemed pleased with the magistrates’ decision, promising to abide by the rules and pay the sum in cash off the firm’s balance sheet.
While several X users speculated that the company will settle with the agency as early as this week, both entities have been silent on the matter.
Just recently, Ripple’s lawyers filed a new motion, requesting a stay on the monetary portion of the Court’s Judgment entered last month. According to the letter, the company revealed that the SEC agreed with the proposed terms and delay of the payment (which was due on September 6).
Ripple’s attorneys suggested transferring 111% of the sum (around $138 million) to its legal team’s bank account as security. The funds will supposedly be kept in the account until 30 days after the time to appeal expires. Recall that both parties have until early October to contend the ruling.
Per the motion, one of Ripple’s attorneys (Kellogg Hansen) will ensure that the sum stays in the account until it is either released by a court order or through an agreement between both entities.
“Should the court of appeals vacate or modify the Judgment, the parties will attempt in good faith to reach an agreement about the appropriate treatment of the Fund and will submit to the Court any disputes they cannot resolve,” the letter reads.
Some industry participants assumed that this move could be a precursor of a possible appeal by the SEC. The American attorney Fred Rispoli is among those sharing that thesis, saying:
“Going through all this effort with establishing a trust for the funds boosts chances of an appeal IMO. But ultimately, this is just the safest play for SEC to buy time until the Oct. 7 deadline to appeal.”
XRP Price Outlook
The latest actions on the Ripple v. SEC front have triggered little to no volatility for XRP (the company’s native cryptocurrency). It keeps trading in the $0.55-$0.56 range, a level observed in the past two days.
However, it remains deep in the red on a two-week scale, losing around 8.5% of its valuation. Its price decline coincides with a broader market correction where Bitcoin (BTC) briefly slipped below $56,000 while Ethereum (ETH) tumbled to as low as $2,300.
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