The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has hit another snag. Both parties are awaiting court approval for a settlement reached in May, but a rejection of their motion has stalled progress.
Legal Gridlock in Process
On June 12, Ripple and the SEC filed a joint request for court approval to modify a prior judgment. The district court previously denied their initial motion on May 15, citing insufficient grounds. Without court consent, the signed settlement cannot take effect.
Ripple and SEC Settlement
The agreement signed will include Ripple paying a penalty of 50 million dollars and a retribution of 75 million dollars. However, none of these actions can occur before the court reverses its prior decision.
Appeals Process Frozen
The SEC asked the appellate court to maintain the hold on the case while the district court reviews the new motion. Ripple agreed, and both parties promised to submit another joint update by August 15. The current freeze will stay in place until at least that date.
The ongoing settlement process reflects the uncertainty within the crypto regulatory landscape. The wait for the court's next decision leaves many investments in a regulatory gray area, and the outcome of this case could shape the future of digital asset regulation.
