The lawsuit between Ripple ($XRP), the well-known digital payment platform using blockchain technology, and the United States Securities and Exchange Commission (SEC) has taken a new turn. As per the reports, the Judge Analisa Torres has officially rejected Ripple and SEC’s joint proposal to decrease the former’s penalty to $50M while also eliminating a permanent injunction. While responding, the judge condemned the attempt, saying it was unacceptable.
Ripple’s Lawsuit with SEC Touches Final Stage with Judge Rejecting Settlement Proposal
The judge considers this proposal as an attempt by Ripple and SEC to reverse a final ruling by the court via a private settlement. Hence, this proposal has been denied, triggering swift response from a notable executive at Ripple. In this respect, Stuart Alderoty, the Chief Legal Officer of Ripple mentioned that now Ripple is again standing on the winning side.
The executive added that Ripple currently faces a couple of options. One of them is to dismiss the appeal challenging the judgment regarding historic institutional trades or move forward with the appeal. He mentioned that despite the route token, the legal status of $XRP is still unchanged, reaffirming that it does not stand in the category of security.
SEC Reportedly Cites Incorrect Legal Ruling, Says Ripple’s Crypto Attorney
John Deaton, Ripple’s crypto attorney, also commented on this development. He specified that the SEC reportedly cited an incorrect legal rule. It has reportedly failed to present any potential circumstances to justify altering the previous ruling of the court. Deaton added that more stringent arguments are anticipated this time.
Moreover, legal expert named Fred Rispoli is of the view that both the SEC and Ripple might finally pull back their appeals to settle around the $50M. He also hinted at the potential of the U.S. SEC to provide informal assurances to Ripple if the company stays compliant. According to Rispoli, while the injunction of the judge would technically still be effective, there may never be its enforcement if the SEC chooses not to take further action.
