.png){kind=logo}
The US Securities and Exchange Commission (SEC) has asked the Court of Appeals of the Second Circuit to stay its suit against Ripple Labs Inc. This is following a previous order in which the two parties were directed to submit a joint report on the changes to be made to the final judgment. SEC will issue the following status report on August 15, marking the end of the third quarter of 2025.
This case arose in December 2020, when the SEC accused Ripple of engaging in an unregistered security offering using its XRP token. Since that time, the legal proceedings have involved multiple motions and hearings. The most recent twist of the story lies in the adaptation of the financial penalty and injunction conditions drawn by the court. Attorney James K Filan witnessed that on June 12, the sides submitted a reconsidered motion, which the court is now considering.
According to Rule 60, Ripple and the SEC have made a motion seeking an indicative ruling offered in the district court. They want to minimise the existing civil penalty to "$50 million." With such a passing, the remaining money in escrow would revert to Ripple. The proposed plan aligns with the SEC's ongoing adjustments to its enforcement strategy for the digital asset sector.
The motion references extraordinary circumstances, a standard rule of modifications under 60. Both parties acknowledged the need to avoid lengthy litigation in the case. In the view of legal analysts, Judge Analisa Torres may react before the August status update, given the court schedule and consideration of the motion.
Also Read: Crypto Market Update: SRM Becomes Tron Inc, Purpose Investments Launches XRP ETF
This case may have broader implications for regulating cryptocurrencies. A favorable ruling can facilitate a better understanding of how the XRP can be treated legally and similar proceedings of the SEC on other tokens in the future. It may also impact the outcome of XRP exchange-traded fund (ETF) applications that have yet to be addressed by the authorities.
After the reports surfaced about the delay, XRP has increased by almost 4 percent, currently trading at 2.24 dollars. The case is still under observation by investors and players in the crypto industry, as its judgment may influence central policy-making in the world of digital assets.
