Important update on Ripple’s lawsuit against SEC on September 5th

TL;DR

Ripple requested a delay in paying a $125 million fine, with the SEC agreeing to the proposed terms, prompting speculation of a possible appeal. The legal developments have had minimal impact on the price of XRP, which remains trading around $0.55. The latest update

The legal battle between Ripple and the US Securities and Exchange Commission (SEC) reached a major milestone in early August. Judge Torres then ordered the company to pay a $125 million fine for violating certain securities laws, which was just a fraction of the regulator’s initial $2 billion demand.

Some of Ripple’s executives, such as CEO Brian Garlinghouse and CLO Stuart Alderoty, seemed satisfied with the magistrates’ decision, promising to abide by the rules and pay the sum in cash from the company’s balance sheet.

While several X users speculated that the company will settle with the agency this week, both entities have remained silent on the matter.

Ripple’s lawyers recently filed a new motion, requesting a stay of the monetary portion of the Court’s ruling filed last month. According to the letter, the company disclosed that the SEC agreed to the proposed terms and the delay in the payment (which was due on September 6).

Ripple’s lawyers suggested transferring 111% of the sum (about $138 million) to their legal team’s bank account as security. Funds will supposedly remain in the account for up to 30 days after the appeal period expires. Remember that both parties have until the beginning of October to claim the sentence.

According to the motion, one of Ripple’s lawyers (Kellogg Hansen) will ensure that the sum remains in the account until it is released by a court order or through an agreement between both entities.

“In the event that the appellate court vacates or modifies the Judgment, the parties will attempt in good faith to reach an agreement regarding the proper treatment of the Fund and will submit to the Court any disputes that they cannot resolve,” the letter said .

Some industry participants speculated that this move could be a precursor to a possible SEC appeal. American lawyer Fred Rispoli is one of those who share this thesis, saying:

“Going through all this effort to establish a trust for the funds increases the chances of an appeal at the IMO. But ultimately, this is just the safest move for the SEC to buy time until the 7 of October to appeal”.

XRP Price Outlook

Ripple’s recent actions on the SEC front have resulted in little to no volatility for XRP (the company’s native cryptocurrency). It continues to trade between $0.55 and $0.56, a level seen in the past two days.

XRP Price, Source: CoinGecko

However, it remains in the red on a two-week scale, losing around 8.5% of its valuation. Its price drop coincided with a broader market correction where Bitcoin (BTC) briefly dipped below $56,000, while Ethereum (ETH) fell to $2,300.

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