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Ripple and the US Securities and Exchange Commission (SEC) have once more approached the US judicial system aiming to modify the arrangement of a $125 million escrow fund allocated for settlements.
Interestingly, the five-year-long legal dispute between both parties has notably de-escalated over the last three months, coinciding with other crypto-friendly actions from the Donald Trump administration.
Nonetheless, both parties confront a significant challenge in persuading the court about the necessity of amending the original injunction in its final decision.
Related Reading: The Curse Of Ethereum: First-Ever ETH Treasury Company Suffers Shocking 73% Crash – Details
Ripple-SEC Saga Persists
In 2020, the SEC filed charges against Ripple, alleging the latter had sold over $1.3 billion in unregistered securities (XRP) sales.
In July 2023, a judge determined that secondary sales of XRP do not classify as securities transactions, marking a significant partial win for the crypto sector. However, the final ruling issued in August 2024 included an injunction mandating Ripple to pay a $125 million fine for infringing section 5 of the Securities Act 1993.
Remarkably, the specified $125 million was quickly deposited into an escrow account awaiting the conclusion of the case, which was soon followed by notices of appeals from both sides. Nevertheless, the briefs of both appeals were placed on hold on April 16, 2025, after a report of an agreement-in-principle between the parties emerged.
Ripple and SEC Attempt Motion Again
In what seems to be part of the agreement between the SEC and Ripple, both entities approached the court on May 8 requesting a revision to the configuration of the $125 injunction fee against the blockchain enterprise due to “exceptional circumstances”.
The joint motion suggested that only $50 million be paid to the SEC as a fine, while the remainder would be returned to Ripple. However, the court dismissed this motion on May 16, citing a lack of clarification on how these “exceptional circumstances” justify a revision.
In a subsequent joint motion submitted on June 12, both parties articulate these “exceptional circumstances,” one being that the proposed agreement does not alter the initial summary judgment from the court.
Additionally, the motion emphasizes that the requested relief benefits both entities involved in the case, as well as the public interest, while introducing a settlement that could definitively conclude this matter. Furthermore, this suggested modification would halt the progress of the appeal briefs and conserve court resources.
Ultimately, both the SEC and Ripple reiterate that permitting the modification of the injunction structure and thus closing the case aligns with the SEC’s present policy of dismissing certain crypto cases through joint stipulation.
XRP trading at around $2.16 on the daily chart | Source: XRPUSDT on TradingView.com
Image credit from iStock, chart from TradingView
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