Ripple CLO Advices the SEC to Move On from Case, Sighting Resolution in 24 Days

The long-running court battle between Ripple and the Security and Exchange Commission (SEC) recently saw a pivotal development on August 7. Judge Analisa Torres of the United States District Court for the Southern District of New York ordered the blockchain company to pay a $125 million civil penalty for violating securities laws by offering XRP to institutional investors.

Even though the amount is more than the $10 million Ripple initially proposed to pay, the company welcomed the decision and has decided to obey the court. However, discussions of the SEC filing an appeal continue to loom, and the CLO of Ripple, Stuart Alderoty has advised the watchdog to quit the case.

SEC Not Rational in Crypto Dealings

In a recent interview, Alderoty suggested that the SEC should move on from the case pointing out that the court didn’t find any victim and nobody suffered any loss relating to the sales or investment in XRP. He also stressed that there was no fraud and that nothing in the case advances the mission of the SEC.

He noted that throughout the history of the case, the SEC has not shown rationality in dealing with cryptocurrencies, adding that the court condemned the commissions’ poor tactics, engaging in “litigation gamesmanship” instead of critically applying the law.

In the possibility of the SEC filing an appeal, Alderoty said that he wouldn’t be surprised if the agency took this route but one thing sure is that the status of XRP as a non-security, and the secondary market sales of the coin as non-security transactions can not be challenged as it has already been written in the law.

Furthermore, he pointed out that the SEC only has a less than 10% chance of winning an appeal if they choose to file one. He said that the case was an “overreach” from the beginning and that the SEC’s record of dealing with crypto-related matters is “terrible.” Also, he said that in the case that the lawsuit reaches the Supreme Court, the SEC won’t have a reasonable chance of winning.

Ultimately, he asserted that Ripple would pay the $125 million fine, aligning with a previous statement made by CEO Brad Grlinghouse on X (formerly Twitter) and that a resolution might be reached within 24 days.

XRP Price Movement and Potential ETF

Meanwhile, the price of XRP has lost the gains accumulated after the court’s decision. On that day, the price of the coin soared 25% passing the $0.65 mark. However, at the time of writing, XRP has dropped below $0.6, now changing hands at $0.56. According to data from CoinMarketap, the value of the asset has seen a marginal 0.31% spike over the last day.

On more welcoming news, the talks of a possible XRP ETF have flooded the market after a well-known Chicago-based CTFC-regulated digital asset derivatives exchange Bitnomial stated that it will start offering XRP/USD (XUS) Futures Contracts.