A federal court has rejected the joint motion by Ripple Labs and the U.S. Securities and Exchange Commission (SEC) regarding the $125 million penalty and restrictions on institutional XRP sales.
Court Denies Joint Motion
U.S. District Judge Analisa Torres denied the motion to vacate the penalty and final ruling on institutional XRP sales, despite both parties having reached a settlement.
Attempts to Close the Case
This marks the second attempt by Ripple and the SEC to close the long-running case. The parties also requested the court to approve a settlement where the SEC would keep $50 million and return $75 million from the penalty amount. Judge Torres previously ruled that XRP sold on exchanges did not violate securities laws, but that institutional sales did.
Ripple’s Next Steps
The judge stated that the parties do not have the authority to agree not to be bound by a court’s final judgment of violating the law. Ripple and the SEC must now decide whether to withdraw their appeal or proceed with it. Ripple's chief legal officer, Stuart Alderoty, indicated that the company has not yet determined its next steps.
Thus, the court has denied Ripple and the SEC's request, upholding the existing ruling regarding the prohibition on institutional XRP sales.
