Table of Contents
Court Developments in Ripple vs SEC Saga
The ongoing legal battle between fintech firm Ripple and the US Securities and Exchange Commission (SEC) experienced another twist recently. Judge Torres has denied a joint request from Ripple and the SEC to lift an injunction and reduce penalties from USD 125 million to USD 25 million, deeming the motion “procedurally improper.” This determination arises from the failure to file under the correct Rule 60(b) motion within the Federal Rules of Civil Procedure.
Key Takeaways:
-
Ruling Details: Judge Torres deemed the joint settlement request flawed as it did not properly present a motion for relief from judgment, instead misframing it as a settlement-approval motion. Consequently, the request for vacating the August 2024 injunction and reducing the civil penalty was rejected.
-
Ripple’s Response: Stuart Alderoty, Ripple’s Chief Legal Officer, sought to reassure XRP holders, stating that the ruling does not alter the previous decisions that recognised XRP as a non-security. He explains that the issue is purely procedural and both parties plan to present this matter to the court again.
-
Legal Expert Insights: Attorney Fred Rispoli described the ruling as a minor setback, mentioning that the dispute could require the parties to plead earnestly for a favourable reconsideration in front of Judge Torres.
- Market Reaction: Following the ruling, the price of XRP saw a significant drop of almost 8%, falling to USD 2.36. This figure is notably 38% lower than its all-time peak of USD 3.84, achieved in January 2018.
Background Overview
Initially filed on May 8, Ripple and the SEC’s joint settlement sought to lift the injunction against Ripple’s “unlawful offer and sale of securities” and sought a drastic reduction in penalties. The court’s ruling has emphasized the necessity of exceptional circumstances and proper procedural adherence when requesting such relief, thus denying the motion based on its procedural shortcomings.
Ripple’s Assurance
Despite the setback, Ripple’s Alderoty maintained confidence, asserting that the court’s decision should not be construed as detrimental to the firm’s prior court victories that established XRP’s status. He clarified that the dispute centred around procedural concerns related to Ripple’s cross-appeal and reiterated that both parties remain committed to resolving the case.
Next Steps and Potential Outcomes
Legal experts predict that Ripple and the SEC may need to refile their appeal under the correct procedural guidelines. The likelihood of success may hinge on the court’s receptiveness to the refiling. Rispoli’s commentary underlines that they must approach the court with tact, possibly having to “beg for relief" to persuade Judge Torres.
Simultaneously, XRP’s market performance reflects the uncertainty surrounding the case. Following the court’s ruling, many investors reacted by selling off their holdings, resulting in a notable price decrease. At the time of writing, XRP remains well below its historical highs, which could suggest heightened caution among traders.
Conclusion
While this latest ruling adds another chapter to the Ripple vs SEC saga, it seems to be a procedural hurdle rather than a substantive defeat in Ripple’s ongoing legal journey. As both parties prepare to address the court again, the cryptocurrency market will continue to watch closely, keen to gauge the implications of these developments on XRP and the wider crypto landscape.
