XRP News Today: Ripple SEC Legal Battle May Extend 60 Days

Ripple and the U.S. Securities and Exchange Commission (SEC) are poised to file a Rule 60 motion in their ongoing legal dispute over the classification of XRP. This procedural move, if approved, could extend the deadline for a final judgment by 60 days. The legal battle, which has been ongoing for several years, revolves around whether XRP should be classified as a security, a determination that could have far-reaching implications for the cryptocurrency market.

The Rule 60 motion is a legal tool that allows parties to request corrections or amendments to a judgment or order. In this context, the motion is likely aimed at addressing specific issues or errors that have surfaced during the legal process. The SEC and Ripple have been engaged in a contentious debate over the interpretation of securities laws as they apply to cryptocurrencies, with the outcome of this case potentially setting a precedent for how other digital assets are regulated.

Legal experts have suggested that the filing of a Rule 60 motion indicates that both parties are seeking a more thorough review of the case, possibly to address any misunderstandings or misinterpretations that may have occurred. This motion comes as the current 60-day settlement pause, granted by Judge Analisa Torres, is set to expire on June 16. This pause was intended to allow both parties to negotiate a potential settlement, but it appears that a resolution has not yet been reached.

The SEC's initial lawsuit against Ripple, filed in December 2020, alleges that the company and its executives conducted an unregistered securities offering by selling XRP. Ripple has maintained that XRP is not a security but rather a currency used for cross-border payments. The outcome of this case could have far-reaching implications for the cryptocurrency industry, as it could clarify the regulatory status of digital assets and set a precedent for future cases.

The legal battle has been closely watched by industry participants and regulators alike, as it could provide much-needed clarity on the regulatory framework for cryptocurrencies. The SEC has been increasingly active in pursuing enforcement actions against companies and individuals involved in the cryptocurrency space, citing concerns about investor protection and market integrity. Ripple, for its part, has argued that the SEC's actions are overly aggressive and stifle innovation in the industry.

The filing of the Rule 60 motion suggests that both parties are committed to resolving the case through the legal process, rather than through a negotiated settlement. This could be seen as a positive development, as it indicates that both sides are willing to engage in a thorough and fair review of the evidence. However, it also means that the case could drag on for some time, as the court considers the motion and any potential responses from the other party.

Legal expert Fred Rispoli has addressed concerns about the lawsuit’s future, offering insight into what may happen next. In a reply posted on June 11, he stated, “I’m betting we see Ripple and SEC file the Rule 60 motion to Torres tomorrow or Monday.” This anticipated filing could be critical ahead of the June 16 deadline for a status update in the Second Circuit. Rispoli had previously pointed out that despite the deadline fast approaching, there was still “no refile yet by SEC and Ripple in district court.” He emphasized that the June 16 status update looms large and suggested that a refile would likely occur before that deadline.

Rispoli added that the denial of the first request would be all that the Second Circuit has to review if no motion is filed beforehand. Without a refile, the appellate court may push the case out another 60 days, further delaying resolution. However, if the motion is filed, the Second Circuit may consider granting additional time. Rispoli also previously speculated about the next step in the case and revisited the tone set by Judge Torres. According to him, her message was “clear that both parties need to beg for forgiveness.” He remarked that while Ripple might be willing to do so publicly, it remains to be seen how far the SEC will be allowed to go.

With only a few days left until that deadline, the focus now shifts to Judge Torres’ docket. If Ripple and the SEC file the Rule 60 motion as predicted, it could buy both sides more time and clarity in the appeal process. The legal expert who commented on the situation noted that the filing of a Rule 60 motion is not uncommon in complex cases, and that it is a standard procedural tool used to ensure that the court's decision is fair and accurate. The expert also noted that the outcome of the case could have significant implications for the cryptocurrency industry, as it could provide much-needed clarity on the regulatory status of digital assets.