Ripple’s Legal Battle With SEC Continues – Here Are The Facts

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As a seasoned researcher who has witnessed countless legal battles within the cryptocurrency realm, I must say that the Ripple-SEC saga remains one of the most intriguing and complex cases I have come across. The latest developments suggest that this battle may not be over yet, with the SEC considering an appeal against Judge Torres’ ruling.

Although Judge Analisa Torres’ decision on August 7 seemed to resolve the protracted legal dispute between Ripple and the US Securities and Exchange Commission (SEC), new information suggests that the SEC may still be thinking about filing an appeal, leaving the case unresolved for now.

Ripple Requests Stay On Monetary Judgement

Ripple recently filed a letter requesting a stay on the court’s monetary judgment awarded against the crypto firm in favor of the Commission. In her judgment delivered on August 7, Torres ruled that Ripple should pay the SEC a fine of $125 million for violating securities laws. 

Initially, Ripple was scheduled to make a payment of $125 million to the Securities and Exchange Commission (SEC) by September 6. But, following a request for a stay, Judge Torres granted this extension. This means that Ripple will not be obliged to pay the SEC until either 30 days after the end of the appeal period if no appeal is filed, or after the Court of Appeals makes a decision on any potential appeal.

This implies that the SEC may be contemplating an appeal in the case, given that they granted the stay request before Judge Torres made his decision. According to legal expert Fred Rispoli, the Commission might have approved this request because if Ripple paid the monetary judgment immediately, the SEC would have to pay interest on it. However, if the SEC decides to appeal and loses the appeal, they would have to pay Ripple the principal amount plus any accumulated interest.

Ripple’s Legal Battle With SEC Continues – Here Are The Facts

In my role as a researcher, I find myself in agreement with the Commission’s decision to allow Ripple to maintain their funds in trust during this period of deliberation. The crux of our consideration revolves around the potential appeal of Judge Torres’ ruling, specifically focusing on her assertion that XRP does not inherently qualify as a security.

The Commission has until October 6th to determine if they will lodge an appeal. However, Ripple, through its CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty, has consistently stated that they do not plan to file an appeal, viewing the court’s decision as a significant step towards legal clarity in their favor.

Ripple Looks To Lobby For More Favorable Conditions For Crypto

It appears that Ripple’s ongoing legal dispute with the SEC has motivated them to advocate for better regulations within the cryptocurrency sector, in hopes of halting the Commission’s actions against similar firms. As reported by Bitcoinist, Ripple’s co-founder Chris Larsen was among 88 business leaders who supported Democratic presidential candidate Kamala Harris by signing a letter of endorsement.

Previously, Alderoty expressed support for Republican candidate Donald Trump by donating $300,000 to his campaign. It is speculated that this was due to Trump’s pro-cryptocurrency stance. Notably, Trump pledged to dismiss SEC Chair Gary Gensler on his inaugural day if elected. Gensler has been at the helm during the Commission’s legal disputes with Ripple and is recognized for his critical view towards cryptocurrencies.

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2024-09-08 03:11