The ongoing legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple has taken a new turn as both parties have jointly requested a Manhattan court to dissolve the existing injunction in their case. Additionally, they have asked for the release of the $125 million civil penalty currently held in escrow.
The proposal outlines that $50 million would be allocated to the SEC, while the remaining $75 million would be returned to Ripple. This move signifies the efforts of both parties to settle the prolonged legal dispute, avoid further court proceedings, and bring pending appeals to a close.
In a recent court filing, Ripple and the SEC argued that “exceptional circumstances” warrant a change in Judge Torres’s previous ruling. These circumstances include a settlement agreement between the two parties, recent changes in the SEC’s approach to cryptocurrencies, and a mutual desire to expedite the resolution of the case.
However, legal expert Fred Rispoli has expressed skepticism regarding the new filing. He highlighted that Judge Torres had previously denied a similar proposal in May, indicating her frustration with the case. Rispoli suggested that the latest filing lacked the depth and sincerity needed to sway the judge’s opinion, as it failed to address the SEC’s regulatory shortcomings in the crypto space or offer a genuine apology from Ripple.
Rispoli acknowledged that while the legal arguments presented in the filing were sound, they had also been put forth in the previous unsuccessful attempt. He cautioned that Judge Torres may once again reject the proposal, citing it as a misstep on the part of Ripple’s legal team.
Despite the uncertainties surrounding the case, Rispoli remains hopeful that Judge Torres may be inclined to bring the matter to a close. Even if the injunction remains in place, Ripple would still be able to sell XRP to institutional investors, albeit under different conditions than before 2018. While some cautious firms may exercise restraint, others willing to embrace innovation could proceed with transactions.
The outcome of this latest development in the Ripple-SEC legal saga now rests on Judge Torres’s response, as the crypto community eagerly awaits the next chapter in this protracted legal battle.