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

The long-running legal battle between Ripple and the US Securities and Exchange Commission (SEC) has yet to be concluded despite Judge Analisa Torres’ August 7 ruling, which appeared to have ended the case. This follows a recent development showing that the SEC is still considering appealing the court’s ruling. 

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. 

Ripple was meant to have paid the SEC by September 6. However, the stay request, which Judge Torres granted, showed Ripple would no longer have to pay the $125 million to the SEC until 30 days after the expiration of the time allowed for an appeal with no appeal filed or after a decision by the Court of Appeals resolving any potential appeal.

This suggests that the SEC, which consented to the stay request even before Judge Torres granted it, is still considering appealing the case. As explained by legal expert Fred Rispoli, the Commission likely agreed to this request as they could pay Ripple an interest on the monetary judgment if the crypto firm were to pay now, and the SEC ended up appealing and losing the appeal. 

As such, the Commission is content for Ripple to keep the funds in trust while they weigh their options on whether to appeal Judge Torres’ ruling, especially the one in which she declared that XRP wasn’t a security in itself. Rispoli also increased the likelihood of an SEC appeal to 60% following the stay request put forward by Ripple. 

The Commission will have until October 6 to decide on whether to file an appeal. Ripple, on its part, has long made it clear through its CEO, Brad Garlinghouse, and Chief Legal Officer (CLO) Stuart Alderoty that it has no intention to file an appeal as they see the court’s ruling as a victory in their search for legal clarity.  

Ripple Looks To Lobby For More Favorable Conditions For Crypto

Ripple’s legal battle against the SEC seems to have pushed the crypto firm to lobby for more favorable conditions for the crypto industry as it seeks to end the Commission’s enforcement actions against crypto firms. Bitcoinist recently reported that Ripple’s co-founder Chris Larsen was one of 88 corporate leaders who signed a letter endorsing Democratic presidential candidate Kamala Harris. 

Meanwhile, Alderoty had earlier shown support for Republican presidential candidate Donald Trump, donating $300,000 to the former US president’s campaign. Alderoty is believed to have donated because Trump has adopted a pro-crypto stance. Interestingly, Trump has also promised to fire SEC Chair Gary Gensler on his first day in office if elected. Gensler has overseen the Commission’s legal battle against Ripple and is known for his anti-crypto stance. 

Featured image from The New York Times, chart from TradingView