Recap of Ripple’s lawsuit against SEC September 18

TL;DR

Ripple’s legal battle with the SEC is nearing a possible conclusion after Judge Torres ordered the company to pay a reduced fine of $125 million. The company recently requested a suspension of the payment, prompting speculation of a possible SEC appeal before the Oct. 6 deadline. Experts suggest this move could buy time for further legal maneuvering. The calm before the storm?

The lawsuit between Ripple and the US Securities and Exchange Commission (SEC) has been ongoing for nearly four years and remains one of the hottest topics in the cryptocurrency space. We recall that the regulator sued the company in December 2020, accusing it of raising more than $1.3 billion in an unregistered securities offering by selling its native token, XRP.

The end of the battle seems inevitable, considering the major development witnessed last month. Judge Torres then ruled that sales of XRP in secondary markets to retail investors did not constitute securities transactions. However, it ordered Ripple to pay $125 million for violating certain securities laws.

While the size of the sum may seem substantial, it actually represents a 94% discount over what the SEC originally asked for. As such, numerous industry participants (including Ripple CEO Brad Garlinghouse) viewed the court’s decision as a major victory.

The executive said the company will abide by the ruling, while CLO Stuart Alderoty assured that the penalty will be paid in cash from the company’s balance sheet.

The SEC, on the other hand, has remained silent on its next move. Given its initial request, however, market watchers believe the agency is more likely to appeal Judge Torres’ decision. The deadline for this development is October 6.

The last presentation

Several analysts and members of the XRP community speculated that Ripple is about to pay the multibillion dollar fine in the first week of September.

Contrary to general expectations, the firm filed a new motion requesting the suspension of the monetary portion of the Court’s Judgment issued last month. His lawyers revealed that the Commission agreed with the proposed conditions and the delay in payment.

The move sparked heated debate in the space, with some experts interpreting it as a harbinger of potential attraction. American lawyer Fred Rispoli was among those who shared the thesis, saying:

“Going through all this effort to establish a trust for the funds increases the chances of an appeal at the IMO. But ultimately, this is just the safest move for the SEC to buy time until the 7 of October to appeal”.

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