$XRP | CASE UPDATE: SEC vs. Ripple Labs, Inc.

SUMMARY OF THE COURT’S DECISION

Case: SEC v. Ripple Labs, Inc.

Date: Recent ruling on post-judgment requests

What Ripple & the SEC Requested:

Both parties jointly asked the Court (under Rule 62.1) to issue an indicative ruling on two points:

1. Dissolve the injunction that prohibits Ripple from selling XRP as unregistered securities.

2. Reduce the civil penalty from $125 million to $50 million as part of a proposed settlement.

This request was part of a broader attempt to finalize a settlement across both the District Court and the Second Circuit.

What the Judge Decided:

The Court denied the motion, stating that:

• The request was procedurally improper.

• The parties treated it like a pre-judgment settlement, but the case had already reached a final judgment.

• Relief from final judgments must be requested under Rule 60, which requires proof of exceptional circumstances. The motion failed to cite Rule 60 or meet its criteria.

• Even if jurisdiction had existed, the Court would still deny the motion on its merits.

Key Takeaways:

• The injunction remains: Ripple is still barred from selling XRP as an unregistered security.

• The $125 million penalty stands: The Court rejected the proposed reduction to $50 million.

• The case is ongoing: Cross-appeals are still active in the Second Circuit.

• This is a procedural setback, not a final loss. Ripple’s strategy failed here, but other legal paths remain.

So, What’s Next for Ripple?

Despite this denial, Ripple and the SEC still have viable options:

1. Pursue the existing appeals in the Second Circuit Court of Appeals.

2. File a proper motion under Rule 60, clearly demonstrating why the judgment should be altered.

3. Negotiate a revised settlement and follow the correct post-judgment legal process.

BOTTOM LINE:

No need to panic. This was a legal misstep, not the end of the road. XRP’s legal saga continues—and the outcome is still wide open.