Key Takeaways
- Both Ripple and SEC have requested a delay in the long-standing lawsuit appeal as they await a court decision.
- The settlement negotiations involve a reduced penalty and a potential lifting of the injunction for Ripple.
- The price of XRP rose 2.60%, with a market cap of $132.05 billion and a trading volume surge.
The SEC and Ripple Labs have requested that the US Court of Appeals for the Second Circuit halt their ongoing appeals as they return to the negotiating table to finalize a settlement agreement. The request by both parties came as they await a crucial decision from the district court on their proposed settlement terms.
According to information from the two entities, a joint status report was submitted on June 16, requesting abeyance of the appeals until August 15, 2025. Commenting on the development, defense attorney James Filan reported that the SEC agreed to provide a status update by that date.
Failed To Demonstrate Exceptional Circumstances
The SEC and Ripple settlement is said to have centered on a June 12 joint motion filed in the US District Court for the Southern District of New York. The motion seeks to dissolve the injunction against Ripple and restructure the $125 million civil penalty distribution. Under the proposed terms, the regulatory body would receive a $50 million settlement, while the remaining $75 million would be returned to Ripple Labs. This represents a modification of the original penalty structure established in the case.
The current motion comes hot on the heels of the court’s rejection of an earlier settlement attempt in May. Judge Analisa Torres denied the initial joint motion for an indicative ruling, stating it failed to demonstrate the “exceptional circumstances” required to modify a final judgment. The latest filing represents the latest attempt to address concerns and provide additional reasons for the court to support the settlement. If all goes well and the district court approves the motion, both SEC and Ripple would ask the Second Circuit to issue a limited remand to finalize the settlement.
Positive Sentiment As the Legal Optimism Grows
The development occurs at a time when XRP, the native token of Ripple Labs and the XRP Ledger, has shown a positive sentiment as legal optimism grows. According to the latest data, XRP’s price surged by 2.60% and hit $2.24 shortly after reaching a new high of $2.27. The market capitalization of the entire cryptocurrency market currently stands at $132.05 billion, suggesting a 185.33% increase in trading volume, which reflects vigorous investor activity.
Conclusion
The US Appeals Court is now obliged to decide whether to grant the request by the SEC and Ripple and delay its decision until August 15. The outcome of the court’s decision will determine whether the appeals process will pause or continue. Moreover, the August 15 Status report will provide direction for the settlement negotiation.
Frequently Asked Questions
What is the issue with XRP and the SEC?
For failing to register its crypto tokens as required under US securities laws, the SEC alleged that Ripple and its leaders raised capital to finance their business through the sale of XRP in unregistered securities offerings and deprived investors of material information relevant to their investments.
What was the outcome of the XRP lawsuit?
In July 2023, Judge Analisa Torres ruled that secondary sales of the XRP (XRP) token are not securities, granting Ripple and the crypto industry a partial yet major victory.
How much will XRP be worth if they win the lawsuit?
Should Ripple successfully navigate and resolve its ongoing regulatory challenges, the price of XRP has the potential to soar dramatically. Many expert analysts are setting new price targets, confidently predicting that XRP could surpass the remarkable threshold of $10.