Ripple and the U.S. Securities and Exchange Commission have jointly filed a new status report with the U.S. Court of Appeals for the Second Circuit. Both parties are seeking to pause the ongoing appeals process as they push for a crucial ruling change from the lower court.
This latest development follows their earlier request to District Judge Analisa Torres, where they asked her to amend the final judgment issued in the case. The receipt of the request might be a success or failure that may appeal to withdraw the case. The future regulatory status of the company Ripple now depends on this court decision.
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As a matter of partial settlement, the SEC agreed to drop drastically the fine, and Ripple would be fined half a hundred million dollars. Also, the agency wants the court to overrule the injunction that was introduced earlier to prohibit Ripple from selling XRP to institutional customers within the U.S. This is an order given by Judge Torres last year in August.
In October, the SEC, led by then-chair Gary Gensler, filed a note of appeal. Soon after, Ripple brought its own cross-appeal. Today, the two parties have said they would not raise an appeal should Judge Torres amend the initial decision.
High-Stakes Motion Could Decide Ripple’s Regulatory Future
The joint status report cites “exceptional circumstances” as the basis for revisiting the case. So far, Judge Torres has indicated there is no compelling reason to change her ruling. However, the parties hope the court will view their latest agreement as a reason to reconsider.
According to pro-XRP lawyer John Deaton, the judge is unlikely to rush the decision. He emphasized that while the motion is essential, Torres may take time to evaluate it thoroughly.
Another update by the SEC is due on August 15, and until then, Ripple remains in limbo as its ability to sell XRP to institutions hinges on the outcome of this decisive court case.
The possibility of the judge accepting to revise the ruling may be the legal and financial future of Ripple. The case currently hinges on a single ruling that may either end the controversy or extend the appeals.
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