A federal judge in New York has denied a joint request from Ripple and the U.S. Securities and Exchange Commission (SEC) to lift restrictions on XRP sales, which could significantly impact the company's financial obligations.
Reasons for Denial of Ripple and SEC Settlement
Judge Analisa Torres noted that the SEC had previously indicated that Ripple was likely to continue violating federal laws. In her five-page order, she stated, "None of this has changed — and the parties hardly pretend that it has."
Rejection of Modification Request
Torres emphasized that the parties failed to demonstrate "exceptional circumstances" necessary to modify a final judgment. The SEC and Ripple referenced other crypto cases where the SEC had voluntarily dismissed its actions, but the judge pointed out that those cases never reached a final judgment unlike Ripple's case.
Ripple's Reaction to Court Ruling
In a social media post, Ripple's chief counsel Stuart Alderoty stated that the company now has two options: either dismiss their appeal regarding historic institutional sales or continue with it. He highlighted that XRP's legal status as not being a security remains unchanged.
The court's denial to amend conditions for Ripple highlights the importance of adhering to federal laws and reaffirms that companies must operate within the established legal framework.
