XRP News Today: Ripple SEC Case Nears Resolution With $50 Million Penalty Proposal

The Ripple v. U.S. Securities and Exchange Commission (SEC) case, which has been ongoing for over four and a half years, is approaching a critical juncture. June 16 marks the deadline for the SEC to submit a status update to the U.S. Court of Appeals for the Second Circuit, revealing whether a settlement has been reached or if the appeal proceedings will continue. On June 12, both parties filed a revised joint motion with a Manhattan federal court to release the $125 million civil penalty held in escrow. This motion, supported by past legal precedents, seeks an indicative ruling from the judge. If Judge Analisa Torres approves the new motion, both parties are expected to drop their appeals, potentially paving the way for a full resolution of the case.

The legal status of XRP is a significant factor in this case. A ruling in favor of Ripple could weaken the SEC’s influence and create a more flexible regulatory environment for cryptocurrencies. Conversely, a ruling against Ripple could reinforce the SEC’s authority and set a stricter precedent for digital asset regulation. Attorney Bill Morgan noted that the central argument of the joint motion is the necessity to modify Judge Torres’ final orders for the settlement to proceed. Morgan suggested that if the fine is reduced and the injunction on institutional sales is lifted, the case can be fully resolved. He further argued that the modification of the final orders was a strategic decision, as the two parties could have simply agreed to drop the appeal and cross-appeal, but Ripple pushed for more.

The market is now in a state of anticipation, awaiting the outcome of this pivotal moment. The joint motion filed by Ripple and the SEC seeks to dissolve the permanent injunction against Ripple and reduce its $125 million penalty to $50 million. This proposal, if approved, could potentially end the four-and-a-half-year legal battle. The request to lift the long-standing injunction against Ripple's sales is a significant development, as it could reinstate investor confidence in XRP. The motion also includes a proposal to split the $125 million civil penalty, with $50 million paid to the SEC. This joint rejection of the appeal indicates a willingness from both parties to reach a settlement, with the SEC agreeing to challenge its ruling on XRP's procedural sales and Ripple waiving its appeal. The outcome of this case will have far-reaching implications for the cryptocurrency industry, as it could set a precedent for future regulatory actions.