- Judge Torres rejects the Ripple-SEC settlement, maintaining the $50 million fine and injunction.
- Ripple’s legal team responds, stating that XRP’s status as non-security remains unchanged.
- Deaton highlights the SEC’s surprise at Judge Torres’ decision and its weak legal argument.
Judge Analisa Torres rejected a proposal by Ripple and the U.S Securities and Exchange Commission (SEC) to reduce the fine to $50 million and scrap the permanent injunction. Both parties would have wanted to overturn the last verdict in court with a confidential settlement. This effort was condemned by Judge Torres, who argued that privately struck broads cannot overturn publicly handed down verdicts.
The judge offered two alternatives to both Ripple and the SEC, either cancel their appeals or have their appeal of her injunction. Ripple Chief Legal Officer Stuart Alderoty was prompt to counter, stating, “The ball is back in our court.” According to him, XRP is not a security, and its legal status remains unchanged.
Legal Experts React to Judge Torres’ Bold Ruling
The ruling attracted the response of legal experts. One of the attorneys involved in the case, John Deaton, commented that this decision by the SEC came as a surprise to many of them. He mentioned that the SEC referred to the incorrect rule and did not present a great argument to reverse the decision. Judge Torres assured that neither of the parties had achieved sufficient standards to change the initial verdict.
Judge Torres turned down the SEC’s petition to impose a 60% cut on the fine. Deaton commended her because she was adhering to the law. He emphasized his point of defending investing parties, particularly in a market that has scams such as Celsius and FTX. His argument was that after all those years of legal efforts, the argument by the SEC was not strong.
Eleanor Terrett of CNBC gave further details. She clarified that the case highlights the rule that even a private settlement cannot supersede a ruling made in the interest of the public. This ruling by the judge safeguards the public interest. The court re-emphasized that judgments cannot be changed easily when it comes to negotiations through the law courts.
Attorney Fred Rispoli even implied that Ripple and the SEC could settle on approximately 50 million. According to him, the SEC could tell Ripple that it would not impose any new restrictions once the company complies. Nevertheless, Rispoli observed that the injunction granted by the court will remain until the SEC decides to implement it, something which he believes is unlikely.
XRP Drops as Legal Uncertainty Weighs on Price
The ruling has impacted the price of XRP. The cryptocurrency fell by 4.38%, sliding below the major resistance level of $2.10. The level of support is now being pushed to $2.00. The legal ambiguity on XRP has added to the pressure on selling XRP, particularly by institutions that are highly sensitive to changes in the regulatory environment.
Related: XRP Drops Below $2, Even with 452K Active Addresses: Report
The implication of the continued legal tussle between Ripple and the SEC still affects the performance of XRP in the market. These fluctuations in the price of the token indicate the volatility of the coin as a result of the pending court case. The actions Ripple will take next and the reaction of the SEC will be followed closely. Since it may have tremendous consequences on the future of XRP.
The case is essential to Ripple and the entire cryptocurrency market. It would define the regulatory framework of digital assets in the U.S. The decision can establish significant precedents towards the regulation of cryptocurrencies in the future. This case will remain central to investors and those people in the industry as the case proceeds.
The legal status of Ripple and the performance of XRP on the market are unclear. The future of the case may be very impactful. The results of this case will probably impact the way the regulation of cryptocurrencies takes place in the future.
