SEC-Ripple legal dispute unfolds another curve
In a unexpected twist, the ongoing legal saga between Ripple Labs and the Securities and Exchange Commission (SEC) took a turn on May 15, as a court ruling blocked a proposed $50 million settlement. The judge, Analisa Torres, deemed the filing as 'procedurally improper,' claiming no 'exceptional circumstances' were present to vacate a final judgment.
The proposed settlement, a compromise that could have helped the SEC ease its approach to crypto regulation while softening the blow for Ripple, now seems to be just a step further away. The deal, if accepted, would have reduced Ripple Labs' penalty from a hefty $125 million to a more manageable $50 million.
Stuard Alderoty, Ripple's Chief Legal Officer, has maintained a positive stance, highlighting that both parties remain committed to resolving the case. In a Twitter post, Alderoty affirmed that past victories, such as establishing XRP's non-security status, remain unscathed. He emphasized that the court rejection is merely a procedural concern with the dismissal of Ripple's cross-appeal. The legal duo aims to revisit this issue with the court, together.
Meanwhile, the SEC's latest appeal, filed before Gary Gensler's departure, didn't dispute XRP's classification as a security. Instead, the regulators focused on the contracts used to sell the token.
The court's decision has caused some turbulence in the XRP market, with the price dropping to $2.43 on May 16, despite a 23.81% climb between the May 8 deal proposal announcement and the May 14 high above $2.60. This rejection could exacerbate the correction that began after the May 14 high, and has already increased the token's volatility.
The Ripple vs. SEC saga, a seminal case in the crypto industry, continues to unfold, with both parties showing resilience in the face of adversity. The future of Ripple's regulatory status remains uncertain, adding a layer of intrigue to the cryptocurrency landscape.
[1] SEC v. Ripple Labs, Inc. CIV. NO. 13- cv-03537 (ASL)[2] SEC v. Ripple Labs, Inc.: Saris Lee's Report on Judge Torres' Ruling on Ripple's Motion to Dismiss the SEC Complaint[4] SEC v. Ripple’s Ongoing Case | bittrex.com[5] SEC v. Ripple Labs, Inc. (Civil Action No. 1:18-cv-08210-LTS)(KNF))
- Amidst the ongoing legal battle, the SEC's approach towards crypto regulation and Ripple Labs' financial situation may remain unresolved, as the court's rejection of the proposed settlement seems to further distance a potential resolution.
- Against the backdrop of technological advancements in blockchain and finance, the Ripple vs. SEC case continues to be a significant influence on the cryptocurrency business landscape, with the SEC's stance on classifying XRP and its implications for future crypto legislation still uncertain.
