XRP News Today: Judge Rejects Ripple SEC Bid to Lift XRP Sales Injunction

A New York Judge has rejected a request from Ripple and the U.S. Securities and Exchange Commission to lift legal constraints on Ripple’s institutional XRP sales, which would have ultimately considerably slashed fines previously demanded by the agency during the Gary Gensler era.

Judge Analisa Torres denied the joint bid by the Securities and Exchange Commission and Ripple for an indicative ruling. In the June 26 five-page order filed in the U.S. District Court for the Southern District of New York, Judge Torres pointed to the SEC’s previous stance against Ripple involving claims that Ripple would likely continue to break federal laws in pushing for an injunction.

“None of this has changed — and the parties hardly pretend that it has. Nevertheless, they now claim that it is in the public interest to cut the Civil Penalty by sixty percent and vacate the permanent injunction entered less than a year ago,” Judge Torres stated in the order.

The SEC and Ripple have been requesting that Judge Torres grant their request and issue a ruling that the court “dissolve the injunction against Ripple,” allowing the company to pay a $50 million civil penalty to the SEC, with the remaining funds to be returned to Ripple.

Torres rejected the parties’ first motion for failing to demonstrate the “exceptional circumstances” required to justify modifying a final judgment. In their joint motion, the SEC and Ripple mentioned other crypto-related suits where the regulator had voluntarily tossed out their cases since Chairman Gary Gensler left office in January. However, Judge Torres argued that those cases never reached a final judgment, unlike the Ripple case. In each instance, the SEC withdrew before any court found that a legal breach had transpired.

The Court is not persuaded. For starters, none of the enforcement actions cited by the parties involved an injunction or a civil penalty. In each of those cases, the SEC dismissed its case before a court found a violation of federal securities laws,” she wrote.

Judge Torres also rejected the idea that a shift in SEC policy or a newly created crypto task force justified dissolving the injunction. She stressed that final court rulings are a matter of public interest, particularly when enforcing federal laws that safeguard investors. Amending the penalties would send the wrong message to other companies considering following securities laws.

“The parties must show exceptional circumstances that outweigh the public interest or the administration of justice. They have not come close to doing so here,” the Judge explained.

With this, the ball is back in our court. The Court gave us two options: dismiss our appeal challenging the finding on historic institutional sales—or press forward with the appeal. Stay tuned. Either way, XRP’s legal status as not a security remains unchanged.

A recent court ruling has dealt a significant blow to both Ripple and the U.S. Securities and Exchange Commission (SEC) in their ongoing legal battle. Judge Torres has rejected a joint request from Ripple and the SEC to lift an injunction and reduce a $125 million penalty. This decision comes as a major setback for both parties, as it maintains the existing financial penalties and legal constraints on Ripple's operations.

The court's denial of the request for an indicative ruling means that the prior court order remains in effect. This order had sought to dissolve the injunction and reduce the financial penalties imposed on Ripple. The rejection of this request indicates that the court is not inclined to alter the current legal framework surrounding the case, which has been a contentious issue for both Ripple and the SEC.

The legal battle between Ripple and the SEC has been ongoing for several years, with key issues still unresolved regarding remedies and future regulatory oversight of digital assets. The denial of the request represents a procedural win for Ripple in its multi-year battle with the U.S. securities regulator. However, the broader case remains ongoing, with significant implications for the regulatory landscape of digital assets.

The court's decision to maintain the injunction and the $125 million penalty is a clear indication that the legal process will continue to be protracted. This ruling underscores the complexity and significance of the case, as it involves fundamental questions about the regulation of digital assets and the role of the SEC in overseeing this emerging sector.

The denial of the request for an indicative ruling also highlights the challenges faced by both Ripple and the SEC in resolving their disputes. The court's decision to uphold the existing penalties and legal constraints suggests that neither party has been able to make a compelling case for altering the current legal framework. This ruling is likely to have far-reaching implications for the digital asset industry, as it sets a precedent for how similar cases may be handled in the future.

The ongoing legal battle between Ripple and the SEC is a critical moment for the digital asset industry. The outcome of this case will have significant implications for the regulation of digital assets and the role of the SEC in overseeing this emerging sector. The court's decision to maintain the injunction and the $125 million penalty is a clear indication that the legal process will continue to be protracted, with significant implications for the future of digital assets.