The U.S. SEC and Ripple file a joint motion requesting an indicative ruling to enforce the parties’ settlement agreement.
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In an unexpected turn of events, the parties filed a motion in a New York federal court yesterday, informing the court of their settlement.
SEC Approves Settlement with Ripple
The filing comes hours after the SEC officially announced a settlement with Ripple and two of its executives, Chris Larsen and Brad Garlinghouse.
The SEC’s commissioners expectedly approved the settlement terms, which require Ripple to pay a fine of $50 million instead of the initial $125 million order and also vacate the permanent injunction imposed on the company’s future XRP sales.
This approval has been pending for over a month. However, the SEC approved the decision yesterday following a closed-door meeting at the commission.
Parties Ask Judge Torres for Indicative Ruling
Following the approval, the parties jointly filed a settlement agreement letter in the New York federal court. In the filing, the SEC and Ripple asked Judge Analisa Torres for an indicative ruling.
This ruling would determine whether the judge, upon a future joint motion, would vacate the permanent injunction she imposed in her final judgment last year and release the $125 million held in escrow. Of this amount, the parties want $50 million allocated to the SEC, with the $75 million balance returned to Ripple.
Next Steps to Full Resolution
Meanwhile, famous defense lawyer James K. Filan highlighted the next steps in resolving the lawsuit.
Following the parties’ latest filing, the next steps will hinge on whether Judge Torres grants the indicative ruling to dismiss the injunction and release the fine held in escrow.
If granted, the SEC and Ripple will file a motion with the Second Circuit asking for a limited remand to have Judge Torres enforce these orders. Once approved, Judge Torres will have jurisdiction over the case for a limited time.
During this period, the SEC and Ripple will then submit a motion asking her to dissolve the permanent injunction and distribute the $125 million held in escrow based on the settlement agreement.
After Judge Torres enters those orders, the parties will return to the Second Circuit and ask the court to dismiss the appeal and cross-appeal. The timeline for the case’s full resolution remains uncertain.
Pro-XRP Lawyer Remains Optimistic
In the meantime, the XRP community is awaiting Judge Torres’ decision on whether she will grant the indicative ruling. Interestingly, famous pro-XRP lawyer John Deaton feels optimistic that the judge would grant the parties’ indicative ruling request, particularly lifting the injunction, given how sensible the agreement is.
“I don’t want to jinx anything, but the agreement below makes perfect sense, and it’s difficult to see it not going through,”Deaton remarked.
The lawsuit has been frozen in the Second Circuit as the parties work toward its resolution.
DisClamier:
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