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- Ripple and the SEC submitted a request to the U.S. District Court asking Judge Torres to lift the long-standing injunction against Ripple’s sales.
- The news of the settlement has not significantly impacted XRP’s price, which is currently at $2.12.
In an effort to bring an end to their years-long courtroom battle, Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have jointly refiled their request for an indicative ruling, this time addressing the procedural flaws previously flagged by Judge Analisa Torres. The revised motion could signal a final push toward closure in one of the most pivotal crypto cases in U.S. history.
The Rejected Motion
In May, Ripple and the SEC took what many hoped would be a definitive step forward. They filed a motion asking Judge Torres to reconsider aspects of her August 2023 final judgment, which imposed a $125 million penalty on Ripple and permanently barred the company from making institutional XRP sales in violation of securities laws.
As part of their proposal, they outlined a new settlement agreement. $50 million would go to the SEC, while the remaining $75 million, which is currently sitting in escrow, would be handed back to Ripple. The motion also requested that the permanent injunction be lifted, allowing Ripple more flexibility in how it conducts its business moving forward.
However, on May 15, Judge Torres struck down the motion, noting that the parties hadn’t demonstrated the “exceptional circumstances” required to justify such a significant change to a final ruling under Federal Rule 62.1. Essentially, the request lacked the legal strength and procedural correctness needed to succeed.
Unwilling to let that setback derail the settlement, Ripple and the SEC regrouped. They’ve now refiled the motion, this time using the appropriate legal route, Rule 60(b)(6), which provides courts the authority to grant relief from a final judgment for “any other reason that justifies relief.”
The revised motion carefully outlines why their case qualifies as an exception to the norm and why a modification of the judgment is not only fair but necessary. The motion’s tone suggests a deep understanding of the court’s prior concerns and a serious commitment to getting it right this time.
What Makes This an “Exceptional” Situation?
The motion outlines several key justifications for why Judge Torres should consider amending her earlier ruling. Ripple and the SEC both agree that the current judgment stands in the way of finalizing their mutually accepted settlement. According to the filing, if the injunction isn’t lifted and the penalty isn’t adjusted, the agreement can’t be enforced. The motion calls this a “necessary condition” for resolution.
The motion also points to a recent shift in the SEC’s broader crypto enforcement policies. As CNF reported earlier, Paul Atkins was appointed as the chair of the SEC, replacing Gary Gensler. The SEC has withdrawn or paused multiple lawsuits against crypto companies like Uniswap, Robinhood, and Coinbase. Clearly, the Commission is pulling back on some of its more aggressive stances.
As expected, the XRP community is following every development with intense focus. Bill Morgan didn’t mince words. He shared that he had read the motion and he wasn’t pleased: “Just reading today’s Ripple and SEC joint motion to Judge Torres over lunch. It does not become stronger and more impressive the more you read it. I just have a feeling she’s going to grant the motion anyway.”
At the time of writing, one XRP token is trading at $2.12, reflecting a 5.07% decline over the past 24 hours, underscoring the continued influence of legal developments on the asset’s short-term value.
