Ripple Labs and SEC have jointly filed a motion to modify relief terms in their ongoing legal dispute over XRP. This could set a precedent for future cryptocurrency regulatory actions.
Ripple's Relief Motion
Ripple Labs, Inc. and the U.S. Securities and Exchange Commission filed a joint motion to modify relief terms. This move seeks to revise the current $125 million penalty and dissolve the injunctive relief. As Marc Fagel noted, 'Both Ripple and the SEC are proactively seeking to revise the $125 million penalty and the injunction that prevents Ripple from making similar unregistered sales in the future.'
Changing Enforcement Policies
The motion stems from the SEC’s evolving enforcement policy, which has prompted Ripple to pursue more favorable terms. This change indicates a potential shift in the longstanding case dynamics. Bill Morgan, XRP Advocate and Attorney, remarked, 'The SEC’s new policy towards enforcement has encouraged Ripple to seek more than it would have been satisfied with or lived with before the SEC filed its appeal.'
Financial Impacts for Ripple
Financially, the adjustment might enhance Ripple's ability to allocate funds efficiently and potentially broaden its operational capabilities. This alteration could alleviate some of the company's financial pressures.
Community reactions are cautiously optimistic, anticipating a reduction in regulatory overhang. The anticipated outcome may encourage further investments and institutional involvement.
