In a dramatic twist in the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), Ripple has requested a stay order on the $125 million penalty imposed by the court. This move comes amidst speculation about a potential appeal by the SEC, which is expected by October 7. However, renowned attorney Fred Rispoli has reassured investors that there’s no immediate cause for concern.
Rispoli, a well-known figure in the cryptocurrency legal community, has downplayed the potential impact of an SEC appeal on Ripple’s future. According to Rispoli, even if the SEC proceeds with an appeal, any ruling on it is unlikely to be handed down before 2026. This extended timeline significantly diminishes the immediate effects of the appeal on Ripple’s operations and XRP’s market performance.
Rispoli also pointed out that recent SEC lawsuits against various exchanges and the mounting securities allegations have overshadowed the importance of Ripple’s specific case. He emphasized that if Ripple or XRP encounter difficulties in the near term, they will be influenced by factors beyond the SEC appeal, suggesting that the broader market dynamics and regulatory landscape will play a more substantial role.
In response to the SEC’s actions, Ripple and the SEC have reached a new agreement concerning the monetary judgment. Under this arrangement, a trust will hold 111% of the $125 million penalty. The funds will be released to the SEC only 30 days after the appeal deadline passes or upon the completion of the appeal process. This strategic move aims to mitigate immediate financial impacts on Ripple while the legal proceedings unfold.
Despite these developments, XRP’s price remains notably stagnant. Legal expert Bill Morgan has expressed skepticism over why XRP’s price hasn’t reacted positively to recent significant announcements from Ripple. Notably, Ripple has revealed plans to introduce smart contract capabilities to the XRP Ledger (XRPL) and launch its USD-pegged stablecoin, RLUSD. Yet, XRP’s price has barely budged and continues to hover around $0.5535, reflecting a 3.5% decline on the weekly chart.
Also Read: Ripple’s Big Update – Futureverse Custody Deal & XRPL EVM Sidechain Boost Adoption By 2025
Morgan also questioned the application of the Howey test to XRP, casting doubt on whether investors could reasonably expect profits from Ripple’s future efforts based on the token’s recent developments. On-chain data further reveals a rise in XRP short positions, with analysts predicting a potential additional 15% drop from current levels.
As the legal battle continues and Ripple navigates its regulatory challenges, it remains crucial for investors to stay informed about both legal and market developments. While the SEC appeal might not drastically impact Ripple in the short term, the overall trajectory of XRP will likely be shaped by a combination of regulatory, market, and technological factors.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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