- Ripple and SEC jointly filed to dissolve the injunction and lower Ripple’s penalty, citing “exceptional circumstances.”
- Legal experts are divided, with concerns over the motion’s strategy and its reception by Judge Torres.
- A denial could push Ripple to proceed with its cross-appeal to the Second Circuit.
A significant development occurred in the Ripple vs. SEC suit, as the parties filed a joint motion for the U.S. District Court to reopen the indicative ruling and modify the final judgment. This motion was filed late on June 12 and maintained that there existed now “exceptional circumstances” so as to warrant dissolution of the injunction and reduction of the civil penalty imposed on Ripple.
The filing, submitted to Judge Analisa Torres, specifically invokes Rules 62.1 and 60(b) of the Federal Rules of Civil Procedure. Ripple and the U.S. Securities and Exchange Commission (SEC) are seeking court approval to return to the Second Circuit for a limited remand to process their proposed changes. If granted, the modification would dissolve the existing injunction and allow $50 million of the $125 million civil penalty to be released to the SEC, with the remaining funds returned to Ripple.
(Source: Twitter/X)
This move follows a previous denial by Judge Torres in May, when the court rejected a similar request due to improper procedural filings. The judge at the time stated that this request needed to be made pursuant to Rule 60(b), which required a showing of “exceptional circumstances.” In the latest filing, the parties argued that such circumstances exist, citing the recent settlement, changes in the SEC’s posture regarding crypto enforcement, and shared interests in avoiding extended litigation.
Lawyers Offer Cautious Reactions to the Ripple-SEC Motion
The reaction has been swift but cautious from the legal community. Fred Rispoli, a well-known crypto attorney, commented on his distaste toward the approach taken by this motion. “I don’t like this filing based on how obvious it was from Judge Torres’ last ruling that she was pissed.” Rispoli recommended a more detailed motion highlighting the SEC’s failings in crypto regulation, ideally backed by official statements from commissioners and an acknowledgment from Ripple regarding its prior conduct.
He acknowledged that although the motion contains adequate legal backing, the decision ultimately rests at the discretion of Judge Torres. “I don’t think this gets it done, sadly,” he added, implying that a denial is likely.
Legal expert Sherrie echoed Rispoli’s concerns, stating, “While I feel there is a slightly higher chance she’ll come back with something more positive, I am more concerned than I was before.”
Former SEC officials James Farrell and Marc Fagel were also skeptical, arguing that the “extraordinary circumstances” presented may not meet the high threshold needed to alter the final judgment.
Should the request be denied once more, Ripple must consider pursuing its cross-appeal in the Second Circuit, prolonging the high-stakes litigation further. Judge Torres is expected to respond within the next two weeks, which could significantly impact the trajectory of one of the most closely watched cryptocurrency lawsuits in recent history.
Highlighted Crypto News Today:
FIFA and Mythical Games Launch ‘FIFA Rivals’ Globally, Merging Arcade Football with Web3 Ownership
