As a seasoned analyst with over two decades of experience in the financial industry, I find myself intrigued by the latest developments in the XRP lawsuit between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). The recent request for a stay order from both parties indicates that we might be heading towards an appeal, a possibility that some experts had anticipated earlier.
XRP Case: On August 7th, Ripple Labs submitted a court document asking for a temporary halt (stay order) on the financial aspect of the verdict. According to Judge Analisa Torres’ ruling from last month, Ripple has until a specified date (two days) to pay $125 million to the U.S. Securities and Exchange Commission (SEC). Notably, the SEC has also agreed to this stay request. Both parties have signaled their intention to file an appeal in the near future
Initially, the company stated it had no plans for a court appeal, and Ripple’s CEO, Brad Garlinghouse, shares this skepticism regarding the SEC filing an appeal on their rulings. Contrary to this, legal experts who previously worked at the SEC predicted that the government agency might file an appeal before the 60-day deadline elapsed
Ripple and US SEC Seek A Stay Order in XRP Lawsuit
On September 4th, Ripple Labs submitted a request to Judge Torres for a pause (stay) on the financial part of the court’s judgment issued on August 7th, following the remedies phase. The company and the Securities and Exchange Commission (SEC) are seeking this order in order to postpone the $125 million penalty payment to the SEC, which is due by September 6th
Lawyer Fred Rispoli stated that the chances of a successful appeal in the XRP lawsuit have risen due to recent filings. In a mutually agreed arrangement between Ripple and the Securities and Exchange Commission (SEC), 111% of any monetary judgment will be placed in trust. This amount will be paid to the SEC within 30 days after the deadline for filing an appeal or once the appeal process is complete
Previous lawyers from the Securities and Exchange Commission (SEC), James Farrel and Marc Fagel, expressed confidence in the SEC’s potential appeal following a court decision. As per Judge Torres’ order issued on August 7, the SEC has up to 60 days from that date to file an appeal regarding the remedies ruling or any other decisions made. Given that experts predict the government agency may choose to appeal the remedies or summary judgment from last year
What Happen If SEC Files An Appeal And Loses
In simpler terms, some members of the XRP community are wondering if there’s a possibility for an appeal in the ongoing XRP lawsuit with the SEC. If Ripple wins on all points contested, in addition to having the $125 million penalty reversed for Ripple, would the SEC be obligated to pay interest as specified by law?
In simpler terms, James Farrell, a former SEC lawyer, stated that Ripple could continue to pay the judgment while they appeal the decision, and might provide a bond as collateral. If the SEC loses, the cost of the bond may be included in the appellate costs at the discretion of the 2nd Circuit Court, similar to any other court costs. This is based on Federal Rule of Appellate Procedure 39 (FRAP 39)
In another scenario, Ripple must submit an appeal to challenge this decision. If they choose not to, their silence could be interpreted as acceptance of the $125 million debt. Therefore, the appellate court has limited capacity to address matters not currently under consideration
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2024-09-04 19:16