A critical procedural error has unexpectedly stalled the progress of the much-anticipated settlement between Ripple and the U.S. Securities and Exchange Commission (SEC). Despite reaching a formal agreement, the process has been temporarily derailed following a court decision that surprised many.
Ripple signed the settlement agreement on April 23, while the SEC followed on May 8. After that, the parties joined in a motion to stop the appeal and cross-appeal proceedings until the final ruling. They also asked the court for permission to apply to dissolve the restraining order and reduce the fine to $50 million.
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However, the court declined the motion because an important step was missed. Although the filing was complete, it failed to cover Rule 60, which is needed to request relief from a final judgment. The company did not oppose the settlement terms, but the objection came down to a minor point. Bill Morgan, a legal expert, stated that this problem has stopped the parties from proceeding with the necessary steps in the legal process.
Currently, they are unable to go to the Second Circuit Court of Appeals for a limited remand since they only received a setback. The judge must carry out the remand to proceed with issuing the ruling and deciding on the financial penalty.
Legal Teams Scramble to Fix Error and Resume Settlement Process
In response to the court’s decision, both legal teams are expected to file a new motion that correctly references Rule 60. Ripple’s Chief Legal Officer, Stuart Alderoty, confirmed that the court will be revisited with a revised filing to address the issue.
Although there was a delay, the original agreement has not been affected, and both sides are still cooperating. When the proper motion is approved and accepted, it should straighten the way forward with no more breaks.
In the final part, the agreement will have to be found indisputable. The case will then return to the appellate court and go before Judge Torres once more for final approval.
Although the error delayed the settlement, it has not been derailed. As the legal team corrects the error, everyone is still waiting for the court to settle this ongoing case.
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