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The SEC and Ripple have agreed to keep 111% of the judgment amount in a bank account under the care of a law firm.
Ripple has been told by the New York District Court that it can hold off on paying a $125 million penalty to the US Securities and Exchange Commission (SEC). The order, issued by Judge Torres, comes following an earlier request by Ripple as the SEC continues to contemplate an appeal.
According to Judge Torres, the fund will be kept safe in a trust, pending the time that either party comes up with an appeal against the landmark ruling of July 13. That is, when the court determined that XRP is not a security when sold on public exchanges.
The SEC and Ripple have agreed to keep 111% of the judgment amount in a bank account under the care of a law firm. However, the stay will only last for 30 days beyond the initial ultimatum set for either firm to come forward with an appeal or the same number of days after such an appeal is resolved.
Whatever happens, though, the court has made it clear that only the SEC can lay claim to a0l0l interests accrued post-judgment.
Ripple SEC Dilemma: Will an Appeal Impact XRP Price or Not?
Notably, Ripple has been unsure about pursuing an appeal. Top executives from the firm, including CEO Brad Garlinghouse, even denied any such intentions earlier on. However, with the $125 million penalty now paused, SEC and Ripple are now signaling possible appeal.
Ex-SEC lawyers have confirmed that Ripple must file a cross-appeal as failure to do that will amount to conceding that it truly owes the government agency $125 million. However, there is a general concern in the Ripple quarters that an appeal may negatively impact the XRP price.
In response to these concerns, pro-XRP lawyer Fred Rispoli has put out his views via a recent X post. According to the post, a ruling on the SEC appeal is unlikely until 2026. He hinted that the SEC is no longer a very serious problem, citing its endless witchhunt and court cases with several crypto exchanges and multiple tokens.
Rispoli’s view echoes a similar one from Ripple’s CLO, who said that the agency only has a slim 10% chance of winning an appeal if it ever happens.
Furthermore, Rispoli says there is a big possibility that the SEC will withdraw its appeal once “crypto mom” Hester Pierce becomes the agency’s Chair.
For now, there is only guesswork as the SEC is yet to file an appeal. However, a potential filing this September will set the Ripple SEC case on another fight in the Second Circuit Court of Appeals.
As of publication, XRP price lost all gains it recorded in the past 24 hours. It was seen trading at $0.5519, down 0.46% in the past day.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
