Ripple and the U.S. Securities and Exchange Commission (SEC) have jointly filed a request with the court to review their final ruling, seeking to dissolve the injunction and reduce the penalty.
Request for Review of Final Judgment
On June 12, the parties filed a request with Judge Analisa Torres to reopen the indicative ruling under Rules 62.1 and 60(b) of the Federal Rules of Civil Procedure. They aim to dissolve the injunction in the Final Judgment and release $50 million from a $125,035,150 civil penalty being held in escrow for the SEC.
Legal Implications of the Filing
The parties asked the court to grant their request so they can approach the Second Circuit for a limited remand to seek such relief. The filing claims that "exceptional circumstances," including a settlement, the SEC's shift in cryptocurrency policy, and a desire to avoid further litigation, justify modifying the final judgment.
Expert Opinions
Lawyer Fred Rispoli expressed concerns about the filing, noting that Judge Torres was likely displeased by the request. He recommended a detailed motion outlining the SEC’s failures in crypto regulation. Legal expert Sherrie also noted that while there might be a slightly higher chance of a positive outcome, there is growing concern over another potential denial. Former SEC attorneys James Farrell and Marc Fagel stated that the cited "extraordinary circumstances" are insufficient.
Ripple and the SEC continue their legal battle, seeking ways to alter the conditions of their agreement. The future of this case will depend on Judge Torres' response in the coming two weeks.
