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Ripple and SEC Shake Markets Again: Fresh Move to Modify XRP Lawsuit Judgment

Ripple and SEC file joint motion to dissolve injunction and reduce penalty in XRP lawsuit
Ripple and SEC Shake Markets Again: Fresh Move to Modify XRP Lawsuit Judgment
Written By:
Somatirtha
Published on: 

Ripple and the US Securities and Exchange Commission (SEC) have once again requested a federal court to alter the final ruling in their XRP case. The latest joint request filed on June 12 with Judge Analisa Torres asks that the injunction be lifted and Ripple’s $125 million civil fine be lowered.

The filing invokes ‘exceptional circumstances’ in making the request. They are a settlement between the SEC and Ripple, shifts in the SEC’s crypto policy, and a common aim to avert further legal battles. The parties seek the court’s permission to proceed to the Second Circuit Court for a limited remand. That would grant Judge Analisa Torres authority to formally implement the changes.

Under the plan, $50 million of the penalty, now in escrow, would be paid to the SEC. The rest would be returned to Ripple.

Judge Rejected Earlier Request

This is the second time Ripple and the SEC have requested such a motion. Back in May, Judge Torres denied one such motion, calling it “not in conformity with the requirements of the rule.” She added that they had filed it under the incorrect rule. 

The judge specifically stated that any modification of the final judgment will have to satisfy rigid legal standards. This time, the parties have appealed under the right rule, Rule 60(b), and are hoping the court will hear it out.

Also Read: SEC’s Crypto ETF Review Advances with Bitwise Filing for XRP, Solana, and Dogecoin Funds

Lawyers Are Not Hopeful

Legal professionals are not hopeful. Crypto attorney Fred Rispoli remarked that the filing is flimsy and does not address the court’s issues. “They needed a full explanation of the SEC’s failings and a more modest response from Ripple,” he commented. “This won’t be enough.”

Legal commentator Sherrie concurred, adding that she has more questions than she did before the motion. Ex-SEC attorneys James Farrell and Marc Fagel concur that the motions’ arguments are not ‘exceptional circumstances.’

XRP Drops After Filing

The XRP token is bruised following the news. Its price decreased by more than 6% in the past 24 hours. XRP is currently at $2.12, with an intraday low of $2.09 and a high of $2.26. Volume is up 26%, demonstrating strong market response.

Judge Torres will reply within two weeks. If the court denies the motion again, Ripple must then decide whether to pursue its cross-appeal in the Second Circuit.

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