Ripple Labs and the U.S. Securities and Exchange Commission (SEC) are seeking approval from a federal judge to amend an order that prohibits Ripple from selling certain coins and imposes a $125 million fine. Both parties believe that this change is necessary in order to move forward with a settlement agreement.
In their petition to District Court Judge Analisa Torres of the Southern District of New York, Ripple and the SEC argued that “extraordinary circumstances justify this change.”
Following challenges to various aspects of the court’s initial decision in October, there is renewed hope for a resolution as the SEC has shown a more lenient stance on cryptocurrencies under the current administration. It is reported that the SEC is willing to drop certain demands and supports modifying the ruling to facilitate the reconciliation process.
The final decision on the matter rests with Judge Torres.
As part of the proposed settlement reached in early May, both parties have suggested a payment of $50 million to the SEC, with the remaining funds being returned to Ripple. In the event that the court approves the requested amendment, the SEC and Ripple plan to appeal to the U.S. Court of Appeals for the Second Circuit to seek limited restitution, as outlined in the filing.
*Please note that this information is not intended as investment advice.