XRP News Today: Ripple's $125M Penalty Stands as Judge Denies Settlement Modification

Judge Analisa Torres recently denied a joint motion filed by Ripple and the Securities and Exchange Commission (SEC) to modify their settlement. The motion, which sought to amend key terms of the previously agreed-upon settlement, was dismissed due to procedural flaws under Rule 60 of the Federal Rules of Civil Procedure. The denial means that Ripple's $125 million penalty and the ban on institutional XRP sales remain in effect.

Legal expert Bill Morgan has raised six critical questions in response to the court's decision. These questions center on the validity of the settlement, procedural compliance, and the SEC’s internal governance. Morgan's analysis suggests that the use of Rule 62.1, which allows a judge to issue an indicative ruling when a case is under appeal, may have been a deliberate attempt to avoid the higher threshold required under Rule 60. This implies that the legal teams from both Ripple and the SEC might have intentionally chosen this strategy to bypass the difficulty of proving “exceptional circumstances” under Rule 60.

Among the key questions raised by Morgan are whether the parties can refile under Rule 60 and if doing so would require a fresh vote by the SEC’s five commissioners. Additionally, he questions whether the failure to obtain an indicative ruling nullifies the settlement or if it can still be upheld based on the original recitals. Morgan also reflects on whether the Rule 62.1 strategy was a procedural misstep or a deliberate attempt to avoid the higher threshold required under Rule 60.

Ripple's Chief Legal Officer, Stuart Alderoty, has reassured the XRP community that Judge Torres’ denial is procedural and does not affect Ripple’s prior legal victories, including the July 2023 ruling that XRP is not a security. Alderoty emphasized that Ripple and the SEC remain aligned in seeking resolution and plan to refile under the appropriate legal framework. This indicates that both parties are committed to finding a resolution despite the recent setback.

The denial of the motion has sparked discussions among legal experts and market observers about the implications for Ripple and the broader cryptocurrency industry. The ongoing legal battle between Ripple and the SEC has been a significant point of interest for the cryptocurrency community, with many awaiting the final resolution. The questions raised by Morgan highlight the complexities and uncertainties that lie ahead for both Ripple and the SEC as they navigate this legal landscape.