Ripple and the SEC have joined forces to file a motion in a Manhattan district court, hoping for a decision that will support the settlement agreement. This is an unexpected turn in the XRP case. The court has been asked by both sides to lift the injunction and release the money order.
In the XRP case, Rule 60 says that the parties want the court to get rid of the injunction and lower Ripple’s civil fine to $50 million. This is what Judge Analisa Torres said should be done, which is to file under Rule 60, which says that authorization is needed in certain situations.
Ripple and the SEC’s new direction on years-long battle
In an X post , Journalist Eleanor Terrett revealed that both parties have jointly asked the Manhattan District Court to release the $125 million civil penalty against Ripple from escrow.
The deadline for the 2nd Circuit status report is June 16. Therefore, the move is expected to be filed either on Friday or Monday. If submitted, it may persuade the appellate court to provide an additional sixty days to consider the case. The SEC and Ripple are currently facing delays in reaching a final settlement.
In their brief to Judge Analisa Torres, Ripple and the SEC point out “exceptional circumstances” as grounds that allow the motion to be granted.
According to the lawyers, there has been no progress to report as of yet. Thus, the indicative rule request is crucial for both sides . As long as nothing is done, the appeal process will drag on, adding more time to the lawsuit’s timeframe. Legal analysts believe this motion shows a serious intent to settle important injunctive issues.
XRP case blocks Ripple IPO efforts
The present injunction limits Ripple’s ability to sell XRP coins, which is a major roadblock on the way to an IPO. According to legal experts, the injunction must be lifted before Ripple can move forward with its initial coin offering (IPO) plans for the next four years.
Despite turning down comparable requests under Rule 62.1 in the past, the SEC can finally grant the request under Rule 60. Rule 60 requires evidence of substantial changes in the circumstances, as Judge Torres made plain. So, it’s up to the two sides to convince the court to change its mind.
According to legal sources, Ripple and the SEC have agreed to submit this combined motion prior to the continuation of the appeal process. If the motion is granted, the injunction’s status and the sanctions would be changed. Additionally, the motion would postpone the appeals timeline, providing additional time for negotiations on the two sides.
Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
