The Ongoing Legal Battle Between Ripple and the SEC: What’s Next?
The protracted legal struggle between Ripple and the US Securities and Exchange Commission (SEC) is far from over, despite Judge Analisa Torres’ ruling on August 7, which many thought had concluded the case. Recent developments indicate that the SEC is still contemplating an appeal against the court’s decision.
Ripple Requests Stay on Monetary Judgment
Ripple recently submitted a letter requesting a stay on the court’s monetary judgment, which had ordered the crypto firm to pay a $125 million fine to the SEC for violating securities laws. Judge Torres ruled on August 7 that Ripple should make this payment, with an initial deadline set for September 6. However, the stay request, which Judge Torres granted, means that Ripple will not have to pay the $125 million until 30 days after the expiration of the time allowed for an appeal, provided no appeal is filed, or until after a decision by the Court of Appeals resolves any potential appeal.
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This indicates that the SEC, which agreed to the stay request even before it was granted, is seriously considering an appeal. Legal expert Fred Rispoli explained that the Commission likely agreed to this stay because they would have to pay Ripple interest on the monetary judgment if the crypto firm paid now and the SEC ended up losing the appeal.
Current Status of XRP
As of now, XRP is trading at $0.52. The SEC appears content for Ripple to keep the funds in trust while they mull over their options regarding an appeal, especially since Judge Torres declared that XRP wasn’t a security in itself. Rispoli estimates that there is a 60% likelihood of an SEC appeal following Ripple’s stay request.
The Commission has until October 6 to decide whether to file an appeal. On the other hand, Ripple’s CEO Brad Garlinghouse and Chief Legal Officer (CLO) Stuart Alderoty have made it clear that Ripple has no intention of filing an appeal, viewing the court’s ruling as a victory in their quest for legal clarity.
Ripple’s Lobbying Efforts for the Crypto Industry
Ripple’s prolonged legal battle with the SEC has spurred the company to lobby for more favorable conditions for the crypto industry. They aim to end the Commission’s stringent enforcement actions against crypto firms. Recently, Ripple co-founder Chris Larsen was among 88 corporate leaders who signed a letter endorsing Democratic presidential candidate Kamala Harris.
In contrast, CLO Stuart Alderoty has shown support for Republican presidential candidate Donald Trump, contributing $300,000 to the former president’s campaign. Alderoty likely made this donation because of Trump’s pro-crypto stance. Interestingly, Trump has pledged to fire SEC Chair Gary Gensler on his first day in office if elected. Gensler has been a key figure in the SEC’s legal battle against Ripple and is known for his anti-crypto stance.
Conclusion
The legal battle between Ripple and the SEC is evolving, with both parties weighing their options. Ripple has requested a stay on the monetary judgment, and the SEC is considering an appeal. Meanwhile, Ripple is actively lobbying for more supportive conditions for the crypto industry, hoping to end the SEC’s enforcement actions against crypto firms. The coming weeks will be crucial as the deadline for the SEC’s decision on an appeal approaches.
