Ripple v. SEC Lawsuit Recap September 18th
TL;DR
- Ripple’s legal battle with the SEC nears a potential conclusion after Judge Torres ordered the company to pay a reduced $125 million fine.
- The firm recently requested a stay on the payment, sparking speculation about a possible SEC appeal before the October 6 deadline. Experts suggest this move could buy time for further legal maneuvers.
The Calm Before the Storm?
The lawsuit between Ripple and the US Securities and Exchange Commission (SEC) has been ongoing for almost four years and remains one of the hottest topics in the cryptocurrency space. Recall that the regulator sued the company in December 2020, accusing it of raising more than $1.3 billion in an unregistered securities offering by selling its native token, XRP.
The end of the battle seems inevitable, considering the major development witnessed last month. Back then, Judge Torres ruled that the sales of XRP on secondary markets to retail investors did not constitute securities transactions. However, she ordered Ripple to pay $125 million for violating certain securities laws.
While the sum’s size may sound substantial, it actually represents a 94% discount on what the SEC initially asked for. As such, numerous industry participants (including Ripple’s CEO Brad Garlinghouse) viewed the court’s decision as a major victory.
The exec said the firm will respect the ruling, while CLO Stuart Alderoty assured the penalty will be paid in cash off the company’s balance sheet.
The SEC, on the other hand, has remained silent on its next move. Considering its initial request, though, market observers believe the agency is more likely to appeal Judge Torres’ decision. The deadline for such a development is October 6.
The Latest Filing
Multiple analysts and members of the XRP community speculated that Ripple is about to pay the multi-million fine during the first week of September.
Contrary to the overall expectations, the firm filed a new motion requesting a stay on the monetary portion of the Court’s Judgment entered last month. Its lawyers revealed that the Commission agreed with the proposed terms and delay of the payment.
The movement caused heated discussions in the space, with some experts interpreting it as a precursor of a potential appeal. The American attorney Fred Rispoli was among those sharing the 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.”
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