- Ripple’s legal team requests postponement of $125 million fine until potential appeals are resolved or 30 days after appeal period ends
- SEC agrees to Ripple’s proposal to secure 139 million dollars in a bank as a guarantee during the appeal process
- Ripple executives see the recent court ruling as a positive outcome, despite ongoing legal challenges
The battle between Ripple Labs and the U.S. Securities and Exchange Commission continues, with new developments in their legal proceedings. Ripple’s attorneys, on September 4, submitted a document to the Southern District of New York’s U.S. District Court. They detailed an agreement with the SEC to defer the payment of a recent $125 million penalty.
This legal maneuver is designed to provide financial safeguarding for Ripple, pending the outcome of an appeal. The proposal suggests that Ripple deposit 111% of the fined amount—approximately $139 million—into a designated bank account. This amount will be held until either all appeal opportunities have expired or the appeals have been resolved.
Ripple’s leadership has openly welcomed the August 7 judgment, which required the sizable payment. Brad Garlinghouse, Ripple’s CEO, referred to the ruling as favorable for the company’s future, while Stuart Alderoty, Chief Legal Officer, affirmed Ripple’s commitment to complying with the court’s financial penalty.
Legal Implications and Ripple’s Path Forward
The ongoing case, initiated by the SEC in December 2020, accuses Ripple of using its XRP token as an unregistered security to gather funds, implicating top executives including Garlinghouse and Chris Larsen, Ripple’s executive chairman. In a pivotal decision by Judge Analisa Torres in July 2023, the court found that XRP was not a security in terms of its sales on exchanges. This nuanced ruling highlights the complex regulatory environment surrounding cryptocurrencies.
The value of XRP remains relatively stable, noted at $0.56, reflecting a slight increase over the past month. The resolution of Ripple’s legal challenges continues to hold significant implications for the cryptocurrency market and regulatory practices moving forward.
