A prominent community figure asserts that the remaining part of the SEC lawsuit now centers on Ripple as a company rather than XRP as an asset.
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Yesterday, U.S. District Judge Analisa Torres denied the joint motion for an indicative ruling to slash the penalty to $50 million from $125 million and lift the permanent injunction imposed on Ripple’s future institutional sales of XRP.
The judge emphasized that the parties’ settlement agreement does not nullify the court’s final verdict. She believes that the injunction’s dissolution is only pertinent to ending the appeal because the parties made it a condition.
However, she suggested that the parties could still withdraw their appeals if they choose to do so or continue with them.
SEC Case No Longer Concerns XRP
Following her verdict, community figure Vet asserted that the case no longer has anything to do with XRP, emphasizing that the remaining part of the lawsuit solely revolves around Ripple.
Interestingly, Ripple’s CLO, Stuart Alderoty, and other legal experts shared the same sentiment. According to Alderoty, Judge Torres’ decision now leaves the next line of action in the hands of Ripple and the SEC.
He reiterated that the judge proposed two options: continuing with the appeal or withdrawing the case. However, he stressed that the judgment does not affect XRP’s legal status as a non-security.
XRP Remains a Non-Security
Recall that Judge Torres declared XRP a non-security in her summary judgment decision in July 2023. Even the SEC agreed with the decision and refused to challenge it in the appeal initiated last year.
Since Judge Torres issued her final decision, the only remaining matters have been related to Ripple’s corporate actions, specifically its institutional and programmatic sales of XRP.
While the SEC recently agreed to an unconditional withdrawal of its appeal on programmatic sales, Ripple insisted on dismissing its case only if the fine is cut to $50 million and the injunction is lifted. However, Judge Torres has refused to modify her final judgment.
3 Facts in the Ripple Case
Meanwhile, community figure Zach Rector indicated that the judge “stood by the law” in her latest decision. Notably, he highlighted three facts that remain untouched.
Rector emphasized that the SEC has already surrendered its ‘war on crypto,’ as reflected in the withdrawal of crypto-related enforcement actions. He also mentioned that XRP in itself is not a security, meaning that the token does not fall under the SEC’s regulatory purview.
Lastly, Rector claimed Ripple is no longer violating federal securities laws, adding that the company has restructured its XRP sales to institutional clients.
In the meantime, the broader crypto community is anticipating the next move from Ripple and the SEC, whether they will refile the joint motion for an indicative ruling or withdraw their appeals, leaving the final verdict untouched.
DisClamier:
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