Ripple’s request to the District Court on September 4 implies the SEC is not done with its case against the company.
Ripple and the US SEC (Securities and Exchange Commission) have agreed to stay the $125 million settlement the SEC has to pay, indicating that the latter may file for an appeal. A longstanding case first filed in 2020 by the financial regulator finally saw a judgment on August 7, with the US District Court for the Southern District of New York ordering Ripple to pay the SEC $125 million.
However, the SEC may not want to end the fight just yet. Both parties can appeal the case for 60 days since the judgment, and a recent court filing from September 4 hints at that happening. Ripple wrote to Judge Torress of the District Court requesting for the stay. The filing said, “Securities and Exchange Commission (the “SEC”) has consented to this request and to the terms of the Proposed Order that Ripple is also submitting today.”
The $125 million Ripple was ordered came with a deadline of September 6, with the company asking the court to “act on this stay request before that date.” Ripple told the judge it would place 111% of the ordered funds in a bank account for 30 days—the duration of the stay—without exhibiting any control over it, with post-judgment interest accruing in the SEC’s favor during the period. The funds will remain in the account until Ripple and the SEC agree to its release.
Ripple Considered the $125 Million Payment a Victory
The SEC appealing the judgment does not come as a surprise to many. Ripple and many in the crypto ecosystem celebrated the judgment despite the $125 million penalties. The SEC asked for $2 billion initially. At the time of the decision, Ripple founder Brad Garlinghouse took to X to celebrate, stating, “This is a victory for Ripple, the industry and the rule of law. The SEC’s headwinds against the whole of the XRP community are gone.”
