The courtroom battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has reached a new stage. Both parties have approached the Manhattan District Court to request the lifting of a previous injunction and the release of a civil penalty totaling $125 million.
Proposed $125 Million Settlement
In a court document filed on Thursday in the U.S. District Court for the Southern District of New York, attorneys representing Ripple and the SEC requested the judge grant their joint motion and issue a ruling to 'dissolve the injunction against Ripple' and pay the regulator a $50 million civil penalty. The remaining funds would be returned to the company.
'Such a move would promote efficiency and the settlement-friendly policy, eliminating the need for additional litigation in this Court and the Court of Appeals and aligning with the SEC’s recent actions in other crypto registration cases,' the filing stated.
Importance of the Latest Motion
Prominent attorney and crypto figure Bill Morgan noted that the latest motion filed by the two parties is 'very important.' He speculated that if the motion is not granted and the settlement agreement is not amended, the appeals would continue.
Earlier, Judge Torres had rejected a previous joint motion for an indicative ruling on the settlement, citing procedural flaws due to pending appeals.
Changes in SEC Regulation
In the most recent joint motion, the parties cite 'exceptional circumstances' such as the SEC’s shift in its crypto enforcement strategy under new leadership, indicating a shift from the more aggressive stance taken under former Chairman Gary Gensler.
The resolution of the situation surrounding the Ripple and SEC motion may become a pivotal moment in a nearly five-year legal battle and highlights changes in regulatory approaches to the cryptocurrency market.
