Ripple and the U.S. Securities and Exchange Commission (SEC) have reached an agreement to postpone Ripple’s payment of a $125 million fine. Ripple was required to pay the SEC a fine under a court order on August 7, but has filed a lawsuit to delay the payment process. The company has offered to deposit 111% of the money (approximately $139 million) into a bank account during this period. This account will not be under Ripple’s control until the case is resolved.
This development also raised the possibility that the SEC will appeal the Ripple case. Ripple CEO Brad Garlinghouse had previously described the court decision as “a victory for Ripple.” However, the possibility of the SEC appealing indicates that the case will take longer to conclude. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
Ripple’s Strategic Move
Ripple’s decision to postpone the payment of the fine is considered part of the company’s financial strategy. The company accepts the court’s decision to fine, but is trying to create more room for maneuver by preparing for the appeal process. While Ripple’s strategy shows that it is determined to fulfill its financial obligations, it is also considered a preparation for the appeal process.
SEC’s Possibility of Appeal
The SEC found Ripple’s XRP sales illegal and demanded a large fine. However, the court ruled that XRP is not a security for retail sales. Despite this decision, the SEC still has the possibility of appealing. Ripple’s decision to wait for the outcome of the appeal process rather than pay the fine shows that the litigation is not over yet.
Awaiting Court Approval
Ripple’s request is subject to the court’s formal approval. Without Judge Analisa Torres’ approval, the stay will not be valid. However, the SEC’s approval of the request has temporarily eased tensions between the two parties.
The case between Ripple and the SEC began in December 2020. Since then, the case has continued to affect the cryptocurrency markets and the relationship between regulators. Both parties are making important strategic moves during the litigation process.
In previous years, there have been long debates about whether XRP is a security. Ripple’s strategic moves in this case and the SEC’s definition of a security also shed light on the regulatory challenges faced by other crypto companies. If Ripple’s decision is final, it could set an important precedent for other crypto companies.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
