On November 23, 2023, U.S. District Judge Analisa Torres rejected a joint proposal from Ripple and the SEC seeking to reduce the penalty to $50 million and lift a permanent injunction. This decision underscores ongoing tensions in one of the most significant legal battles in the crypto space.
Judge Torres's Decision and its Implications
Judge Torres made it clear that the private settlement agreement reached by Ripple and the SEC does not override the court's binding verdict. She emphasized that dissolving the injunction, originally imposed to restrict Ripple's future institutional sales of XRP, can only occur as part of concluding an appeal process, not as a separate agreement negotiated outside court oversight.
Legal Experts Weigh In
Following Judge Torres's decision, legal experts weighed in, noting that the lawsuit is now focused exclusively on Ripple's actions, with XRP itself no longer under legal scrutiny. Ripple's Chief Legal Officer, Stuart Alderoty, confirmed that Judge Torres's ruling leaves two pathways: either proceed with the SEC's appeal or agree to dismiss the case under the court’s existing terms. ‘With this, the ball is back in our court. The Court gave us two options: dismiss our appeal challenging the finding on historic institutional sales, or press forward with the appeal,’ Alderoty stated.
Future of Ripple and SEC
The ongoing litigation has zeroed in on Ripple's institutional and programmatic sales of XRP, which the SEC contends violated securities laws before the ruling. Though the SEC agreed last month to drop its appeal concerning programmatic sales transactions, Ripple is pushing to end the case on its terms, proposing a $50 million fine and removal of the injunction. Judge Torres's refusal to amend her final judgment is a setback for Ripple's attempt to negotiate a more favorable resolution.
Judge Torres's rejection of the proposed settlement highlights the complexities of crypto litigation in the U.S., where regulatory uncertainty has led to drawn-out court battles. Ripple's strategy of aggressively contesting the SEC's allegations sets it apart from other firms that opted for early settlements, positioning the company as a leader in the legal standing of crypto in America.
