XRP Lawsuit Takes Sudden Turn As Ripple And SEC Seek Relief Change

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Ripple and the U.S. SEC have jointly filed a motion seeking an indicative ruling to modify the court’s remedies. The XRP lawsuit has now entered a new phase, focusing on adjustments to previous penalties and injunctions. Both parties seek to end the prolonged litigation by revisiting terms while considering ongoing legal risks.


Ripple and SEC Push for Indicative Ruling in XRP Lawsuit

Ripple and the SEC submitted a joint motion aiming to alter the court’s initial ruling in the XRP lawsuit. The court previously imposed a $125 million penalty on Ripple for unregistered XRP sales, classifying them as securities. The motion reflects an effort to align Ripple’s case with other resolved crypto-related enforcement actions.

In addition to the motion, Ripple filed a supplemental letter stating compliance would remain mandatory, regardless of an injunction’s status. The letter supports reducing the penalty and potentially dissolving the injunction, which currently bars further securities violations. Ripple claims the settlement would still uphold securities law obligations while mitigating prolonged legal consequences.

Marc Fagel, a former SEC official, explained that the court had already issued its judgment, holding Ripple liable for violations. He emphasized that the current motion aims to modify relief, not question liability. This aligns with both parties attempting to conclude the XRP lawsuit while minimizing appeal-related risks.


Legal Experts Highlight Role of Both Parties in Delay

According to Marc Fagel, both Ripple and the SEC are responsible for prolonging the XRP lawsuit by pursuing changes to court-ordered remedies. He confirmed that Judge Analisa Torres had already ruled against Ripple for unlawfully selling XRP as unregistered securities. Despite the ruling, both sides now seek to reshape those outcomes through judicial approval.

Legal experts support Ripple’s position that dissolving the injunction would reflect fairness, especially after the SEC’s selective dismissals in similar cases. Ripple aims to match the treatment of other crypto firms, arguing for equal application of enforcement standards. The SEC, under new leadership, is not opposing the motion but cooperating in revising the remedy structure.

Fagel further clarified that the charges were originally brought under the Clayton administration and are now under Gensler’s oversight. He also addressed misconceptions, asserting the SEC has not intentionally caused delays. The XRP lawsuit continues to await judicial input on whether the proposed relief changes will be granted.


SEC Appeal Strategy Impacts Ripple’s Legal Approach

Ripple’s legal strategy reportedly shifted after the SEC filed an appeal against part of the earlier ruling in the XRP lawsuit. Attorney Bill Morgan suggested this appeal pushed Ripple to seek broader changes, including dissolving the injunction. Without the appeal, Ripple might have accepted the court’s penalty and moved forward.

Morgan emphasized that Ripple’s motivation stems from new enforcement trends under the SEC, which encouraged a more assertive settlement approach. He stated that Ripple might have agreed to the earlier terms if the SEC had not appealed. The current motion represents a response to this evolving legal dynamic.

Legal observers note the court now holds the key to resolving the XRP lawsuit. Approval of the joint motion could finalize the matter in weeks. Until then, the legal process remains active, and a decision on the relief modification is pending.


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