- Ripple and SEC propose a dissolving injunction, seeking $75M for XRP, and $50M for SEC.
- Morgan warns the court may reject Ripple’s conditional settlement for overstepping its authority.
- Deaton sees a 70% chance of approval, but a quick ruling could signal another rejection.
Ripple’s ongoing lawsuit with the U.S. SEC continues to unfold, as a new joint motion attempts to end the four-year legal battle. Lawyer Bill Morgan sees potential in this recent filing, especially in its focus on modifying the final judgment an essential term in Ripple’s proposed settlement with regulators.
Morgan highlighted a powerful argument in the recent filing, which asserts that modifying the final judgment is essential to the settlement agreement between the two parties. According to Morgan’s analysis, this condition is pivotal, making it more than just a request it’s the very backbone of the compromise.
Last week, Ripple and the SEC jointly filed a motion asking Judge Analisa Torres to amend her final judgment. The filing seeks to dissolve the injunction that barred XRP from offering XRP to institutions and proposes a revised penalty structure, awarding Ripple $75 million and leaving the SEC with $50 million.
Ripple Refines Legal Strategy After Setback
The new filing follows the court’s rejection of an earlier motion for an indicative ruling, which failed to establish exceptional circumstances. Morgan explains the revised strategy aims to show that lifting the injunction and altering the fine would help conserve judicial resources and avoid prolonged litigation.
To bolster their case, the parties cited policy changes at the SEC and a trend of recent case dismissals. These points, they argue, qualify as exceptional circumstances. Yet Morgan cautions XRP supporters not to be overly optimistic, pointing out that a similar motion was previously rejected in just seven days.
While Morgan acknowledges that Ripple and the SEC have crafted a stronger case this time, he also admits there’s a key flaw. Ripple made the settlement contingent on the judgment being altered a strategic move that now risks being rejected by the court for overstepping procedural boundaries.
Ripple’s Motion Strategy Faces Court Scrutiny
Despite supporting the motion’s core argument, Morgan underlines that the court didn’t ask for this structure it was Ripple’s choice. He notes the legal pressure this puts on Judge Torres, essentially cornering her into accepting a framework built around Ripple’s conditions.
Morgan points out that either side can end the appeal without modifying the judgment, but their insistence on this structure could backfire by appearing to manipulate the court’s authority.
He speculates that although the court could approve the motion, the odds aren’t absolute. Lawyer John Deaton predicts a 70% chance of approval of the case prediction. He cautions that a speedy decision, especially one reached in less than seven days, would not only reflect the previous denials but also suggest another legal defeat.
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