In a notable development for the XRP community, Ripple has officially requested “a pause” on paying the $125 million settlement to the U.S. Securities and Exchange Commission (SEC) as directed by a court on August 7, 2024. This comes even as the legal battle with the agency continues to unfold.
On Wednesday, Ripple’s legal team submitted the request in a letter to Judge Analisa Torres of the Southern District of New York, stating that the SEC had consented. This request comes just before the deadline for the so-called “monetary portion” of the judgment, which had been set for this Friday, September 6.
Notably, Ripple’s request hinged on Rule 62(b) of the Federal Rules of Civil Procedure, which allows a party to obtain a stay of judgment by providing security. The letter further revealed that Ripple and the SEC had agreed that Ripple would place 111% of the judgment amount in a bank account controlled by its counsel, Kellogg Hansen. The stay will remain in place until 30 days after the expiration of the appeal period or the resolution of any appeal.
Notably, the stay order issued by Judge Torres further reflected these terms, emphasizing that post-judgment interest would continue to accrue in the SEC’s favor. As per the order, Ripple would retain beneficial ownership of the funds, though it will have no control over them during the stay. Further, the funds would only be released under specific conditions, such as mutual consent between Ripple and the SEC, payment of the judgment by other means, or a reversal of the judgment by the Court of Appeals.
That said, the latest development has sparked considerable speculation within the XRP community, considering that the SEC has until October 7, 2024, to decide whether to file an appeal. In a tweet, Pro-Ripple attorney Jeremy Hogan cautioned the SEC’s delay in filing an appeal may suggest uncertainty about its next steps.
“Most likely, the SEC just hasn’t made a decision whether it will appeal yet. Filing a Notice of Appeal…takes only 15 minutes. If the decision to appeal was already made, there’s no reason to delay filing the Notice, especially when you think it’s bad case authority out there.” He wrote.
Elsewhere, popular crypto lawyer Fred Rispoli humorously described the situation as a back-and-forth between Ripple and the SEC. He noted that Ripple’s legal team is essentially telling the SEC, “This is a lot of [money] that we are going to get back and extract maximum interest from you if you appeal and lose. So, are you appealing or not?”
That said, the latest development builds on last month’s ruling, which slashed Ripple’s fine from $2 billion to $125 million, a notable victory for the company. Despite this win, it has increasingly become evident that both Ripple and the SEC are bracing for an extended legal confrontation, a move that could continue suppressing XRP’s price.
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