Ripple Labs has locked 800 million XRP, valued at approximately $504 million, in escrow in several transactions today. This move comes as the Securities and Exchange Commission’s (SEC) appeal deadline, set for October 7, inches closer. The appeal could disrupt the bullish narrative around XRP as the blockchain firm’s legal woes would escalate.
Ripple Locks 800M XRP in Escrow
According to Whale Alert data, Ripple locked 800 million XRP tokens in the escrow in three batches. At first, the 500 million XRP stash, worth $314.84 million was moved to the firm’s escrow.
Thereafter, 100 million XRP, valued at $62.99 million, and 200 million XRP, worth $126.03 million, were transferred to the escrow. The latest movements raised several speculations as experts now expect the SEC to appeal the August 7 ruling in the Ripple case.
🔒 🔒 🔒 🔒 🔒 🔒 🔒 🔒 🔒 🔒 500,000,000 #XRP (314,847,284 USD) locked in escrow at #Ripplehttps://t.co/HfohSK0OCG
— Whale Alert (@whale_alert) October 1, 2024
For further context, in July 2023, U.S. District Judge Analisa Torres ruled that only certain sales of XRP by Ripple violated securities laws. The ruling, however, is seen as a partial victory for the crypto industry, which is battling to demonstrate that digital assets like XRP do not fall under the scope of U.S. securities regulations.
The case has drawn significant attention because of its implications for the broader crypto space Hence, companies like Coinbase, Binance, and Kraken are using the ruling to defend against similar SEC lawsuits accusing them of selling unregistered securities.
Meanwhile, Ripple’s recent decision to lock such a large volume of XRP in escrow is likely aimed at providing transparency and stability for the crypto’s market value amid regulatory uncertainty. The move limits the circulating supply of XRP, reducing the potential for sudden market volatility. However, later when the tokens are unlocked, it could negatively affect the market sentiment.
SEC to Appeal August 7 Ruling?
The SEC, under Chair Gary Gensler, faces a significant decision regarding whether to appeal the ruling. Many legal experts believe the agency is inclined to do so. Marc Powers, a former SEC enforcement lawyer , commented on the situation: “I believe the SEC will appeal. I would think it would not want to have the programmatic trading analysis stand.”
Moreover, Powers pointed out that an appeal could address the inconsistencies between different court rulings on crypto classifications, according to a FOX Business report. If the SEC proceeds with an appeal, it could extend the legal battle and create more regulatory uncertainty, not only for Ripple but for the entire U.S. crypto market.
Critics of Judge Torres’ decision argue that the ruling could result in a fragmented disclosure system for digital assets, which may complicate compliance for crypto companies operating under U.S. jurisdiction. The outcome of this case, whether through appeal or eventual settlement of the $125 million penalty, will likely set a critical precedent for how crypto companies interact with U.S. securities laws in the future.
Also Read: XRP Price Dips as SEC Left With One Week to Appeal in Ripple Case
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