In the ongoing legal saga between Ripple and the U.S. Securities and Exchange Commission (SEC), both parties have taken a notable step by jointly submitting a status update to the U.S. Court of Appeals for the Second Circuit. This update includes a request to temporarily halt the current appeal proceedings. This decision comes in light of a prior appeal to District Judge Analisa Torres seeking to amend the original ruling, which stands as a critical requirement for dismissing any future appeals. Should Judge Torres maintain the ruling without modifications, the appeal process is likely to extend, possibly prolonging discussions aimed at settling the case.
Why Pause the Appeal Process Now?
The request to halt the appeal process stems from an agreement made in April this year. Both Ripple and the SEC agree on the need to suspend the appeal, having expressed that the case involves “extraordinary circumstances” that require careful handling. Despite this understanding, Judge Torres had previously signaled little intention of altering the final judgement even if the case returned to her court.
Should Judge Torres amend the ruling, both parties are prepared to withdraw their appeals, marking a decisive moment in the litigation. John Deaton, a supporter of XRP and a legal representative, anticipates that Judge Torres will deliberate carefully before making any changes to the final ruling.
Can Ripple Overcome Monetary Penalties?
In April, the SEC proposed a significant reduction in the financial penalties previously levied against Ripple. Specifically, the SEC recommended lowering the penalty to $50 million, a figure considerably less than initially set.
The SEC also asked for the removal of a ban established by Judge Torres last August, which prohibited Ripple from offering its XRP tokens to institutional investors in the U.S. This restriction has considerable implications for Ripple’s business operations.
Led by former SEC Chairman Gary Gensler, the regulatory body had filed a notice of appeal at the start of October, with Ripple quickly issuing its counter-appeal. The SEC is expected to deliver its subsequent status report by August 15, 2025.
- Both parties have submitted a joint status report, signaling unusual cooperation.
- The SEC has proposed reducing Ripple’s fine to $50 million.
- Ripple aims to lift the sales ban on XRP to institutional investors while settlement talks continue.
- The appeal process could extend if Judge Torres refuses to amend the ruling.
As the legal proceedings between Ripple and the SEC evolve, the potential outcomes of these requests could notably influence both the immediate legal strategies and longer-term business operations for Ripple. The decisions awaiting Judge Torres are anticipated with keen interest by both legal advocates and the crypto community alike.
