Judge Torres approved Ripple’s request to hold a $125 million penalty as the SEC considers appealing rulings in the ongoing case.
Ripple’s proposed order to retain a $125 million penalty has been authorized by New York District Court Judge Torres, even as the US Securities and Exchange Commission (SEC) considers an appeal.
As the SEC suggests that it may appeal rulings, including the judge’s critical decision during the remedies phase, the company is uncertain about whether or not to pay the penalty.
The Ripple SEC Case is Progressing Toward an Appeal
In the most recent development in the US SEC v. Ripple Labs case, the SDNY Court has granted Ripple’s request for a halt on paying the government agency $125 million. The fund will be maintained in a trust, as Judge Torres has granted further time for either party to appeal the groundbreaking ruling.
The parties reached an agreement to retain 111% of the judgment amount in a bank account that is overseen by a law firm.
The stay in the Ripple SEC case will remain in effect for a period of 30 days following the expiration of the appeal period or the resolution of any appeals in the XRP lawsuit. The SEC will receive the post-judgment interest, as specified in the judgment.
Ripple executives, including CEO Brad Garlinghouse, had previously denied any intention to file an appeal. However, former SEC attorneys have clarified that the company is required to file a cross-appeal. Ripple Labs is acknowledging that it owes $125 million if it fails to cross-appeal in the Ripple SEC case.
Lawyers Assert that the Appeal will not Affect the Price of XRP.
A ruling on the SEC appeal is unlikely until 2026, according to pro-XRP counsel Fred Rispoli in a post on September 5. He asserts that the SEC’s case has been weakened by the SEC’s claims that multiple tokens are securities and that it is prosecuting crypto exchanges.
In addition, Rispoli is of the opinion that the SEC has the option to withdraw its appeal at any moment, with an 80% likelihood that the appeal would be dropped if “crypto mom” Hester Pierce were to become Chair.
“I am confident that the programmatic sales ruling will be the subject of their appeal.” They may include disgorgement; however, I do not anticipate that they will challenge that aspect of the ruling, as it is predicated on 2nd Circuit precedent.
Marc Fagel, a former SEC counsel, advised that it would be more advantageous to pursue a circuit split and contest the matter in a different court.
The Ripple SEC case will be thrust into another battle in the Second Circuit Court of Appeals if the SEC files an appeal this month, despite the fact that the SEC is still in the process of deciding whether to do so.
In the past 24 hours, the XRP price has forfeited all of its gains, and it is currently trading at $0.55. The 24-hour low and high are $0.548 and $0.564, respectively. Additionally, the trading volume has decreased by 15% in the past 24 hours, suggesting a decrease in traders’ interest.
Additionally, derivatives traders’ interest decreased, resulting in a 0.67% decrease in the open interest of XRP futures today. Currently, the total open interest in XRP futures is 1.08 billion, which is equivalent to $593.51 million, according to Coinglass data.
