Bitrabo Editorial
Ripple Labs, a prominent payment company, has made a significant move by seeking to halt the monetary penalties imposed on them as they continue their extensive legal battle with the United States Securities and Exchange Commission (SEC).
Ripple Makes Bold Request for Stay
In a letter filed on Wednesday, Ripple has requested a stay on the monetary aspect of their case, particularly the $125 million fine from the court’s previous ruling. This move aims to delay the financial penalties until a decision is reached on whether the XRP token is classified as a security by August 7, 2024.
Ripple has urged the Southern District Court of New York to address the stay motion before September 6, the current deadline for the payment of the monetary judgment. The SEC has already agreed to the request for a delay.
According to the letter:
The SEC has consented to this request and the terms outlined in the proposed order. Ripple respectfully asks for the court’s prompt action on this stay request before the upcoming deadline for the payment.
Specifically, this action involves placing the $125 million fine in an escrow account, with the funds to be released if the watchdog chooses not to contest the motion after the deadline.
If the SEC decides against an appeal, the funds will be handed over to Ripple Labs. The company is secure under these terms as per the agreement with the SEC.
The stay, as detailed in the filing, will be in effect under the proposed order for 30 days after the appeal period or any appeal decision. The SEC will receive post-judgment interest during this period, as stated in the judgment.
The funds and any interest generated while in the escrow account named Kellogg Hansen will be beneficially owned by Ripple, with no control over it.
Industry Reaction to the Request
Ripple’s move to seek a stay on the fines has sparked discussions within the community about the potential for the SEC to appeal the decision. Legal expert James A. Murphy, known as MetaLawMan, has shared insights on the case, offering perspectives on the possible outcomes.
According to Murphy, the SEC’s options are either uncertainty or a decision to appeal. Given the circumstances, he believes the SEC is likely to appeal the motion, especially since Ripple would have had to pay the $125 million if the Commission chose not to appeal.
As the legal confrontation escalates, this development signifies a crucial juncture in the case that could have lasting implications for the cryptocurrency industry.