Key dealers
- A federal judge denied Ripple and SEC’s joint request to scrape a permanent injunction and reduce a $ 125 million penalty.
- The Court emphasized that changes to final judgments require extraordinary circumstances under Rule 60 (b).
On Thursday, a federal judge refused a joint request from Sec and Ripple Labs to cut a penalty of $ 125 million and lift legal restrictions on Ripple’s institutional XRP sales, and held the order introduced in 2024, Which is announced by defense lawyer James Fillan.
The movementAs submitted earlier this month, the parties’ other bids mark to convince the court to dissolve the permanent ban and reduce Ripple’s civil penalties during a proposed solution. It tried to resolve the injunction against Ripple and redistribute the civil penalty of $ 125 million, which suggested that $ 50 million should be paid to Sec and the remaining $ 75 million returned to Ripple.
Their first attempt Where Rejected by judges analisa torres In order not to have demonstrated the “exceptional circumstances” that are necessary to motivate a final judgment.
Why did Judge Torres Ripple and SEC’s other attempts reject the judgment?
Their second bid, as the first, failed to convince judge Torres to reverse the course, as the parties, according to the application, did not meet the strict legal standard required to change a final judgment. She also dismissed the idea that a change in Sec policy or a newly formed crypto Force motivated to delete the penalty.
In their joint movement, Sec and Ripple quoted other crypto-related cases where Sec had voluntarily dismissed its moods. But as Judge Torres noted, these cases never reached a final decision, unlike the Ripple case. In each example, Sec withdrew before any court established that a legal violation had occurred.
“The Court is not persuaded. To begin with, none of the enforcement measures mentioned by the parties involved an injunction or a civil penalty. In each of these cases, Sec rejected its case before a court found a violation of federal securities laws,” wrote the decision.
Judge Torres emphasized that if Sec and Ripple want to end the case, the easiest way is to withdraw their waiting appeals. Otherwise, if the parties want to get the court’s decision to be deleted, they must follow the correct legal process by appealing the decision through the court system.
In addition, according to Judge Torres, final court decisions earn the public interest, especially when they execute federal laws designed to protect investors. The reverberation of the penalties would send the wrong message to other companies that are considering whether to comply with securities laws.
She repeated that to request a change to the final judgmentThe parties must show “exceptional circumstances that outweigh the public interest or legal administration.” But their second movement fell far below to meet that standard.
