XRP News Today: Ripple Fights Back After SEC Appeal, Seeks Better Outcome

Ripple, the blockchain-based payment company, initially seemed ready to accept the outcome of a lawsuit brought by the Securities and Exchange Commission (SEC). The ruling, which came from Judge Torres, cleared XRP sales on exchanges but found Ripple had violated securities laws when selling to institutional investors. Many believed Ripple would take the partial win, pay the fine, and move on.

However, the SEC's decision to appeal the ruling changed the dynamics of the situation. According to pro-XRP lawyer Bill Morgan, Ripple might not have appealed the decision on institutional sales if the SEC hadn’t filed its own appeal. The SEC’s move reopened the door for Ripple to fight back, giving them a reason to push harder and potentially improve the outcome.

Following the SEC's appeal, both sides engaged in a series of strategic moves. In April and May, they agreed on a settlement that included dissolving the injunction and reducing Ripple’s fine to $50 million. However, their first joint motion was denied by Judge Torres due to a procedural technicality related to Rule 60, which governs changes to final judgments.

Undeterred, Ripple and the SEC filed a second motion on June 12, correcting the error. They are now awaiting Judge Torres' response. If she grants an “indicative ruling,” the case will briefly return to her courtroom to finalize the new terms. This could lead to the dismissal of both the appeal and the cross-appeal, potentially ending the long-running case.

The irony of the situation is that if the SEC had not filed an appeal, Ripple might have accepted the original judgment despite its flaws. However, once the SEC escalated the case, Ripple had every reason to push for a better outcome. The agency’s own move gave Ripple the leverage to negotiate a cleaner exit, with a smaller fine and no ongoing restrictions.

This situation highlights a strategic lesson. The SEC attempted to secure a stronger win but may have inadvertently given Ripple the opportunity to negotiate more favorable terms. Ripple, initially not seeking another fight, did not back down once the battle came to them. They pushed harder and, based on the settlement talks, it appears they might walk away in a better position because of it.