Recent Developments in Ripple vs. SEC
Recent developments in the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) reaffirm the non-security status of XRP. Stuart Alderoty, Ripple’s Chief Legal Officer, addressed the situation on social media after a court ruling denied a request from both Ripple and the SEC to amend previous judgments associated with their case concerning XRP.
Key Court Ruling Insights
Alderoty made it clear that the latest court ruling, which came from Judge Analisa Torres of the U.S. District Court for the Southern District of New York, does not undermine Ripple’s previous legal victories, particularly regarding XRP’s classification as non-security. He stated,
“Nothing in today’s order changes Ripple’s wins (i.e. XRP is not a security, etc).”
The crux of the ruling dealt with procedural matters concerning the dismissal of Ripple’s cross-appeal rather than any changes in the fundamental findings about XRP itself. Alderoty explained that the focus was on the proper channeling of legal motions, emphasizing the ruling’s nature as procedural:
“This issue deals with procedural concerns regarding the dismissal of Ripple’s appeal.”
Procedural Concerns and Future Steps
Judge Torres characterized the motion filed by Ripple and the SEC as “procedurally improper”, pointing out that the motion should have adhered to Rule 60, which directs how relief from final judgments should be pursued, requiring proof of “exceptional circumstances.” As a result, the existing injunction barring Ripple from future violations of securities law, along with the imposed penalty of $125 million, remains intact while the legal proceedings continue.
Alderoty also highlighted that both parties, Ripple and the SEC, remain committed to resolving their differences over the sale of XRP, indicating collaboration is still in progress:
“Ripple and the SEC are fully in agreement to resolve this case and will revisit this issue with the court, together.”
Future Motions and Stakeholder Assurance
Although a tentative agreement that was reached on May 8 aimed at reducing the penalty and lifting the injunction, recent judicial decisions have paused those plans. However, this ruling does not close the door on potential future motions that could be filed correctly. The assurances from Ripple’s legal team serve to comfort stakeholders that the significant judgment made in 2023, which declared XRP’s non-security status, remains unaffected amid ongoing legal maneuvers with the SEC.
