Ripple and SEC seek to end XRP case by modifying a judgment that blocks institutional XRP sales.
The motion proposes reallocating $125 million in escrow funds, with Ripple reclaiming the majority share.
Lawyers note the court may approve the joint request despite earlier rejections and high legal thresholds.
Ripple Labs and the U.S. Securities and Exchange Commission have jointly filed a motion requesting a change to the court’s final judgment in the ongoing XRP lawsuit. The motion seeks to dissolve the injunction that prevents Ripple from offering XRP to institutional investors. This legal move comes as both parties aim to end a dispute that has lasted over four years.
Attorney Bill Morgan pointed out that the motion’s strongest argument hinges on a key clause within the settlement agreement. According to Morgan, both Ripple and the SEC agree that modifying the final judgment is critical to concluding the case. This clause plays a central role in justifying the motion, which aims to bring finality to the legal standoff.
Changes to Penalty Distribution Proposed
The joint filing also includes a proposed redistribution of funds held in escrow. Under the proposed terms, the SEC would retain $50 million, while Ripple would regain access to $75 million. This modification in penalties is part of the overall agreement that both parties hope the court will accept.
The motion argues that modifying the judgment would save court resources by avoiding further litigation. It also cites a shift in SEC policy and recent case dismissals as part of the “exceptional circumstances” required for the court to consider altering its previous decision. The motion follows an earlier rejection of a similar request due to insufficient legal justification.
Court’s Response Timing Could Signal Outcome
Speculation continues over when Judge Analisa Torres will rule on the joint request. Bill Morgan noted that a quick decision might suggest the motion will be denied. In a previous instance, the judge rejected a motion within seven days. Despite this, lawyer John Deaton estimates a 70% likelihood that the judge will approve the joint request.
The critics reply that the threshold of such exceptional circumstances is tight and that the motion would not pass the threshold. Nevertheless, the filing itself is strategically positioned, and the court may be affected by the pressure developed with a mutual agreement.
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