The Ripple and SEC case: Procedural mistakes cause delays
Ripple and the SEC are back in the spotlight after a minor legal error caused their case to be delayed. Judge Analisa Torres recently denied a joint request from both sides, not due to the content but because they filed it incorrectly. According to legal expert James K. Filan, the request was dismissed for not complying with legal regulations.
Attorney Fred Rispoli explained that Ripple and the SEC simply misused procedural rules. He stated that they would have to "work in a more complicated manner" by re-filing their request correctly. While this is an obstacle, it is not significant. Legal analysts suggest that both parties will soon rectify the error and refile.
A few days earlier, Ripple and the SEC had requested the court to pause the proceedings, indicating that they may be close to a settlement. This settlement could involve lifting the previous court order and releasing 125 million USD that Ripple had set aside for penalties.
John Deaton explained that Judge Torres' dismissal is not just a technical error—it may be frustration. After five years of heavy litigation and over 250 million USD spent, the SEC now wants to withdraw. The judge does not easily overlook this and requires both Ripple and the SEC to demonstrate why cancelling the previous ruling is in the public interest, especially since she ruled that Ripple violated securities laws in transactions with institutions.
In contrast, former SEC attorney Marc Fagel argued that the SEC's move is unusual. This is not how an agency wins a lawsuit, receives a court order, and then suddenly changes its mind just because there is a new administration. This makes the SEC's request ambiguous and hard to justify in court.
This legal battle began in December 2020 when the SEC sued Ripple for selling XRP as an unregistered security. Last year, a judge partially ruled in favor of Ripple, stating that XRP transactions with retail users are generally not securities, but transactions with institutions are.
Both parties are now expected to refile their requests in the correct format. Although this mistake slows the process down a bit, it does not change the overall direction of the case.
Source: https://tintucbitcoin.com/vu-ripple-vs-sec-vi-sao-thoa-thuan-lai-phuc-tap/
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