Ripple and the US SEC jointly filed a request with the district court to renew their indicative ruling, seeking an order to dissolve the injunction and reduce the penalty as part of their settlement. The parties contend that “exceptional circumstances” exist for modification of the final judgment.
Ripple vs SEC Lawsuit: Parties File to Dissolve Injunction and Lower Penalty
In a court filing late June 12, the U.S. SEC and Ripple filed with Judge Analisa Torres to reopen the indicative ruling pursuant to Rules 62.1 and 60(b) of the Federal Rules of Civil Procedure. The parties again seek to dissolve the injunction in the Final Judgment and release $50 million from the $125,035,150 civil penalty held in the escrow account to the SEC and the remainder to Ripple.
The parties asked the court to grant the request so they can move the 2nd Circuit for a limited remand to seek such relief from this court. The filing argues that “exceptional “circumstances”—including a settlement, the SEC’s shift in crypto policy, and a desire to avoid further litigation—justify modifying the final judgment.
In May, Judge Torres denied the Ripple and SEC’s joint request for an indicative ruling to modify the final judgment in the XRP lawsuit. Judge Torres argued that parties should have filed under Rule 60 to seek relief, but it requires showing exceptional circumstances.
Filing Stirs Concern Among Lawyers
Lawyer Fred Rispoli said“I don’t like this filing based on how obvious it was from Judge Torres’ last ruling that she was pissed.” He added, “I recommended a long, detailed motion explaining the SEC’s failures in crypto regulation (with Commissioner declarations) and some apologies from Ripple for what it got tagged on.”
Moreover, he asserted that Ripple and the SEC cite enough law for the court to grant it, but the discretion is purely on Judge Torres whether to grant it. “I don’t think this gets it done, sadly,” claimed Rispoli. Judge Torres is expected to reply within 2 weeks.
Legal expert Sherrie also sided with Fred Rispoli, saying, “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.” If it is denied again, Ripple must then decide if they wish to continue with their cross-appeal in 2nd Circuit or not.
Also, former SEC attorneys James Farrell and Marc Fagel claimed that the “extraordinary circumstances” mentioned are not enough.
Meanwhile, the XRP price dropped more than 6% in the last 24 hours, with the price currently trading at $2.12. The 24-hour low and high were $2.09 and $2.26, respectively. Furthermore, the trading volume has increased by 26% in the past 24 hours.
Also Read: XRP Whale Dumps $60M to Coinbase, Price to Drop Further?
