XRP News Today: Judge Rejects Ripple SEC Settlement Proposal

The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) over the sale of XRP has reached a critical juncture. On Thursday, Judge Analisa Torres rejected a joint request by Ripple and the SEC to approve a reduced $50 million fine and remove a permanent injunction. The judge criticized both parties for attempting to circumvent a final court ruling through a private settlement, emphasizing the need for a thorough legal process.

In response to the court's decision, Ripple’s Chief Legal Officer, Stuart Alderoty, stated that the "ball is back in our court." He clarified that Ripple and the SEC now have two options: either drop their appeals or proceed to appeal the injunction. Alderoty emphasized that regardless of the decision, XRP’s legal status as not a security remains unchanged. This development highlights the ongoing legal uncertainty surrounding the classification of cryptocurrencies like XRP.

John Deaton, a legal analyst, noted that Judge Torres pushed back against the SEC's request in a manner that was unexpected. He explained that the SEC cited the wrong rule and failed to demonstrate any exceptional circumstances to justify altering her earlier decision. Deaton pointed out that the judge set a high bar for the SEC to meet, which the commission did not clear. After years of work on the case, the judge was not convinced by the SEC’s sudden request to reduce the fine by 60% and expected more robust arguments from both sides.

Deaton also commended Judge Torres for adhering to the law despite political changes, stating that protecting investors is crucial, especially in a crypto world rife with scams. This underscores the importance of a fair and transparent judicial process in resolving complex legal issues related to digital assets.

Attorney Fred Rispoli suggested that Ripple and the SEC might drop their appeals and settle around $50 million, keeping Judge Torres’ ruling in place. He also speculated that the SEC may privately or publicly assure Ripple that it won’t face further restrictions, as long as it stays compliant. The court’s injunction will remain, but its enforcement is seen as unlikely, given the SEC's approach to the case.

As the lawsuit progresses to its final stage, the court's rigorous approach indicates a more comprehensive and definitive ruling. This development is significant as it sets the stage for a definitive legal precedent on the classification of cryptocurrencies like XRP. The outcome of this case could have far-reaching implications for the broader cryptocurrency industry, potentially clarifying the regulatory status of digital assets and influencing regulatory approaches in various jurisdictions.