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XRP Case Update: SEC Makes Ripple Ask for More
The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has reached a critical juncture, as both parties await Judge Analisa Torres’ decision on the revised settlement motion filed June 12. Legal expert and XRP advocate Bill Morgan has shared his insight, suggesting that the SEC’s aggressive appeal strategy may have inadvertently emboldened Ripple to pursue more than initially intended.
Following Judge Torres’ summary judgment in July 2023, the court delivered a split verdict: exchanges and algorithmic sales of XRP were not securities transactions, but institutional sales violated federal securities laws. At the time, Ripple seemed prepared to accept the ruling in its entirety, including the less favorable determination on institutional sales. It is likely that had the SEC not appealed the summary judgment decision, Ripple would not have filed an appeal regarding the institutional sales part of the summary judgment.
According to Bill Morgan, this might have remained the case if the SEC had not pursued an appeal challenging the court’s decision on programmatic sales. “It seems likely to me,” Morgan wrote, “that had the SEC not filed an appeal of the summary judgment decision… Ripple would not have filed an appeal on the institutional sales part… and the parties would have just moved on.”
In essence, the SEC’s decision to appeal a partial loss has reignited the conflict and shifted Ripple’s legal calculus. The regulator’s enforcement-first strategy may have inadvertently empowered Ripple to seek more than it initially sought. Instead of settling for a partial win, Ripple now appears determined to challenge not only the SEC’s appeal but also revisit the unfavorable ruling on institutional sales.
This pivot signals a more assertive approach from Ripple – one that aims not just to defend its past conduct but to shape future precedent for digital assets across the U.S. regulatory landscape.
In light of this development, the stakes remain high. The remedies phase could determine whether Ripple will be required to pay financial penalties for its institutional XRP sales, as well as whether any additional injunctive relief is imposed. Should Judge Torres’ ruling be unfavorable to Ripple, the company may appeal the original finding that institutional sales constituted unregistered securities offerings.
In the broader struggle over digital asset regulation in the United States, this case serves as a defining battle. Judge Torres’ upcoming decision could further clarify or complicate the legal framework for crypto companies operating within the U.S., with significant implications for the industry.
Source: timestabloid.com
