New York District Court Judge Torres has approved a proposed order by Ripple to hold a $125 million penalty as the US Securities and Exchange Commission (SEC) mulls appeal. The move comes as the company remains uncertain about paying the penalty as the SEC hints at the potential appeal of rulings including the judge’s pivotal decision in the remedies phase.
Ripple SEC Case On Track Towards Appeal
In the latest development in the US SEC v. Ripple Labs case, the SDNY Court has granted an order on Ripple’s request for a stay on paying the government agency $125 million. Judge Torres approved that the fund will remain in trust to allow more time for either party to appeal the landmark ruling.
The parties agreed to keep 111% of the judgment amount in a bank account managed by a law firm. The stay in the Ripple SEC case will last until 30 days after the time to appeal expires or the resolution of any appeal in the XRP lawsuit. The post-judgment interest to accrue will be in the SEC’s favor as outlined in the judgment.
Ripple executives including CEO Brad Garlinghouse earlier denied any intention to file an appeal, but ex-SEC lawyers cleared that the company must file a cross-appeal. If Ripple Labs does not cross-appeal in the Ripple SEC case, it is admitting that it owes $125 million.
Lawyers Say Appeal Will Have Not Impact on XRP Price
Pro-XRP lawyer Fred Rispoli in a post on September 5 said a ruling on SEC appeal is unlikely until 2026. He claims that the SEC suing crypto exchanges and alleging multiple tokens as securities has weakened its case. In addition, Rispoli believes the SEC can even withdraw its appeal at any time, with 80% odds that the appeal would be dropped if “crypto mom” Hester Pierce becomes Chair.
“If they appeal, I’m certain it’s on the programmatic sales ruling. They might throw in disgorgement – but since that’s based on 2nd Circuit precedent, I don’t see them getting that part of the ruling disturbed. Better to fight that in another court & try for a circuit split,” former SEC lawyer Marc Fagel said.
While the SEC is still deliberating on filing an appeal, the potential filing this month will set the Ripple SEC case on another fight in the Second Circuit Court of Appeals.
XRP price lost all gains it recorded in the past 24 hours, with the price currently trading at $0.55. The 24-hour low and high are $0.548 and $0.564, respectively. Furthermore, the trading volume has decreased by 15% in the last 24 hours, indicating a decline in interest among traders.
Interest from derivatives traders also dropped, with XRP futures open interest 0.67% down today. The total XRP futures OI is currently 1.08 billion worth $593.51 million, as per Coinglass data.
Final Thoughts
The decision by Judge Torres to approve Ripple’s request to hold a $125 million penalty in trust reflects the ongoing uncertainty surrounding the SEC’s potential appeal in the landmark Ripple case. By granting more time for either party to appeal, the ruling highlights the complex legal battle that is still unfolding, despite previous judgments in Ripple’s favor.
The stay allows Ripple to avoid paying the penalty immediately, but it also underscores the stakes involved, particularly as the SEC contemplates challenging the ruling. While some experts suggest that an appeal might not significantly impact XRP’s price or the broader market, the continued legal proceedings could still affect investor sentiment and regulatory clarity for the crypto industry.
Article Source: Coingape
