TL;DR
- Ripple delays payment of $125 million fine amid speculation of possible SEC appeal.
- Both parties agreed to deposit 111% of the judgment amount into a bank account while they consider their next legal steps.
- XRP price has dropped to $0.55, losing recent gains due to the uncertainty of the case.
Ripple Labs has decided to delay paying the $125 million fine imposed by the August 7 ruling in its case against the U.S. Securities and Exchange Commission (SEC).
The move comes amid speculation about a possible appeal by the SEC, which still has until October 6 to file an appeal against the partial ruling that favored Ripple.
Ripple‘s legal team filed a request on September 4 to postpone the payment of the fine, a proposal that was approved by Judge Analisa Torres.
Under the agreement, Ripple will deposit 111% of the judgment amount, or $139 million, into a bank account in the name of its law firm, Kellogg, Hansen, Todd, Figel & Frederick PLLC.
These funds will remain in escrow for 30 days or until both parties decide their next legal steps.
This move allows Ripple and the SEC to evaluate their options without Ripple having to incur the additional costs of a suspension bond.
During this period, post-judgment interest will accrue in favor of the SEC, and Ripple will retain beneficial ownership of the funds, albeit without control over them.
In the event the judgment is modified or reversed on appeal, the parties will negotiate how to proceed with the deposited funds.
Legal experts have weighed in on the matter, noting that the SEC’s position may have been weakened by other recent cases in the cryptocurrency space.
Fred Rispoli, a pro-XRP lawyer, estimates that there is a 20% chance that the SEC will continue with its appeal, especially if Hester Peirce takes on the role of SEC president.
Ripple’s chief legal officer, Stuart Alderoty, is optimistic that the SEC has little chance of overturning the case on appeal.
The uncertainty surrounding the case has had a notable impact on the XRP market.
The token has seen a decline in price, sitting at $0.55 and losing recent gains made after the initial crash.
Trading volume has decreased by 15% over the past 24 hours, and open interest in XRP futures has also fallen, reflecting lower trader participation in the derivatives market.
Impact on the future of Ripple and the cryptocurrency market
As Ripple and the SEC evaluate their next moves, the cryptocurrency industry is closely watching the outcome of this case, which could set significant precedents.
If the SEC decides to appeal, the legal process could drag on for years, prolonging uncertainty for investors and market participants.
Meanwhile, Ripple continues to defend its position, arguing that XRP should not be considered a security and that programmatic sales of the cryptocurrency did not violate federal securities laws.
The company is seeking not only to protect its interests but also to establish regulatory clarity in a space that has come under increasing scrutiny from authorities.
On the other hand, the possibility of Hester Peirce, known for her pro-cryptocurrency stance, assuming the leadership of the SEC adds an additional layer of uncertainty and speculation.
A change in SEC leadership could influence the appeal decision and the future direction of regulation in the sector.
XRP holders and the broader crypto community are eagerly awaiting a resolution that could impact not only the price of XRP but also the way cryptocurrencies are regulated and handled in the United States.
The October 6 deadline is approaching, and the SEC’s silence so far has only fueled more speculation about its legal strategy.
Ripple‘s delay in paying the fine and uncertainty about a possible SEC appeal have created volatility in the market and kept everyone attentive to this case that could redefine the regulatory landscape of cryptocurrencies.
