U.S. District Judge Analisa Torres has rejected a joint request by #Ripple and the SEC to modify key elements of a previously issued judgment.
The decision, detailed in a court order dated May 15, represents a procedural setback for Ripple and the SEC, who had reached an agreement earlier this month to conclude the case under revised terms.
Notably, the original motion in question, submitted on May 8, sought two primary changes: the removal of the permanent injunction prohibiting Ripple from engaging in future institutional sales of XRP, and a reduction of the $125 million civil penalty imposed on Ripple to $50 million.
This agreement followed a change in regulatory posture at the SEC, following the resignation of former SEC Chair Gary Gensler. The newly instated leadership has adopted a more conciliatory approach toward the crypto industry, seeking to wind down various high-profile enforcement cases, including this one.
Judge Torres Denies the “Settlement” Motion
Despite the joint support from both Ripple and the SEC for the proposed resolution, Judge Torres ruled that the motion had a procedural flaw.
According to her order, the parties filed the motion under the incorrect rule of civil procedure. They had framed their request as a motion for settlement approval but failed to meet the stringent legal requirements necessary to vacate a final judgment, such as the permanent injunction and penalty initially imposed.
Specifically, they did not reference or satisfy the criteria under Rule 60 of the Federal Rules of Civil Procedure, which governs motions for relief from final judgments. Judge Torres clarified that the court could grant such relief in rare and exceptional circumstances, which the parties had not demonstrated.
The judge stressed that if her jurisdiction were reinstated, as the case is currently on appeal, she would still deny the motion as improperly filed.
Ripple CLO, Other Legal Experts Comment
Following the decision, Stuart Alderoty, Ripple’s Chief Legal Officer, clarified the implications of the ruling...
