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- Ripple and the SEC agree on a $50 million penalty reduction amid push to end legal dispute.
- Judge Torres’ decision on modifying the final ruling could determine the future of Ripple’s XRP sales.
- A joint motion pauses appeals as both sides await the court’s response to a major settlement twist.
Ripple and the U.S. Securities and Exchange Commission have taken a significant step toward ending their years-long legal clash. The two parties submitted a joint motion with the United States Court of Appeals in the Second Circuit to postpone their appeals as they tried to obtain a crucial reshaping of the final ruling.
This follows a settlement agreement in which the SEC accepted reducing Ripple’s punishment to 50 million dollars. In its turn, the regulator requested the court overturn a previous injunction, which prohibited Ripple from selling XRP to U.S. institutional investors. In August, District Judge Analisa Torres imposed the injunction.
Judge Torres’s ability to alter her final decision may determine Ripple’s future in the ongoing legal battle. If accepted, the settlement would result in the dismissal of both Ripple and the SEC’s appeals, potentially ending the case.
The SEC first filed an appeal in October last year, with former Chairman Gary Gensler in charge. Ripple immediately filed a cross-appeal, and the case was on its way to a lengthy battle on appeal. Both sides have recently claimed that there are extraordinary reasons backing a modification of the judgment and cessation of the appeals.
$50 Million Deal and Injunction Relief May Mark a Legal Turning Point
The proposed $50 million penalty marks a substantial reduction from earlier demands by the SEC. Agreeing to a penalty at the reduced level and asking the regulator to lift the limitations on the sale of XRP, the regulator looks eager to implement the issue without additional legal actions.
Although this new cooperation was found, Judge Torres has already expressed unwillingness to reconsider her ruling. She suggested that the reasons advanced above have not provided a firm ground to reverse the decision. A new element of the current motion with reference to the new settlement might also enter into effect and affect the course of the court.
Even as a legal expert and an XRP supporter, John Deaton recently pointed out that Judge Torres is unlikely to hurry up with a decision. He stressed that the court will be mindful of whether the amended ruling meets the interest of justice.
The next status report should be issued by August 15, and this may give a better idea of the case’s course. In the meantime, the court awaits Judge Torres’s decision, which may either dismiss the case or rekindle the appeals between Ripple and the SEC.
Also Read: Guggenheim Unleashes $280M Digital Paper on XRP Ledger via Zeconomy Move
