The entire world has remained glued to their seats throughout the Ripple case against the SEC. Despite the New York District Judge Analisa Torres’s judgment that XRP is not a security and will have to pay the SEC a fine of $125 million for the illegal sales, new twists continue to emerge.
XRP has filed a stay order in the court requesting a stay on the penalty payments. As per the ruling on August 7th, Ripple only has two days remaining to clear the dues.
Ripple’s Makes a Move
Ripple filed a stay order in the court on September 4th, requesting a timeout on enforcing the financial commitments. The document requests more time in the payments and proposes setting aside 111% of the fine in a bank account overseen by the legal team.
According to the document, the money would remain XRP’s, but they wouldn’t have any control over the funds, showing their commitment to meeting their financial obligations. This move also ensures that XRP has enough room to maneuver its legal challenges if the SEC decides to appeal the judgment.
The Cost of Delay
The request to delay the payments also includes an interest clause where XRP is fine with interest building on the fine during the delayed period. Ripple’s risky strategy ensures that the occurrence of an appeal not going in their favor will cost them more, but it still gives them more time to strategize.
Now, what did impact the situation was the SEC’s agreement to XRP’s stay order. The SEC also submitted a proposal to make the stay official. This is the first time the SEC has shown cordial behavior in the ongoing legal woes. The current political environment can be a factor in the leniency.
Ripple’s decision to seek a stay is a calculated move to balance financial obligations along with conjuring a sound legal plan. Securing the funds shows XRP’s commitment to obliging with the judgment of the court while still keeping their guard up in their corner.
According to CoinGecko data, the price of XRP slipped about 1% after reports of the filing went public and is currently trading at $0.5584. The news did not heavily impact XRP’s price, which shows a downtick of about 1.5% on the 24-hour chart.
Also Read: Ripple CEO Announces XRP Stablecoin Will Arrive in Weeks
Source: https://www.cryptonewsz.com/ripple-reach-temporary-agreement-sec-xrp-case/