The fact that a judge does not just go along with agreements between two parties turned out to be again in the case between Ripple and the American stock market watchdog SEC.
Despite a joint request for a modified settlement of 50 million dollars, Judge Analisa Torres has rejected the proposal. Not because of the content of the deal, but because of a procedural error.
Formal error throws a spanner in the works
The proposed deal between Ripple and the SEC was intended as a completion of a dragging conflict that has been going on for five years. The deal would reduce Ripple’s fine from $ 125 million to $ 50 million, eliminate the imposed restrictions and terminate further legal steps. But the joint request was submitted under the wrong legal proceedings: Rule 62.1 instead of Rule 60.
Rule 60 is intended for the revision of final statements and requires that there are exceptional circumstances. According to the judge, this element was completely absent in the submitted request. The result is that the original fine remains and the restrictions on Ripple remain in force.
Signal from the judge: Work must be done again
According to lawyers who follow the case, the rejection is more than a formality. Judge Torres seems to give a clear signal: if an earlier statement has to be revised, then only via the correct legal route and with sufficient argumentation. The tone of her decision indicates that she takes the lack of substantiation seriously.
Lawyer John Deaton states that Torres will not tack quickly. The door is open, but Ripple and the SEC will have to show that an adapted arrangement is in the interest of the public and of investors.
What are the options for Ripple?
According to Crypto-commentator Jungle Inc, Ripple now has three options:
- Request the request, this time under rule 60, with a stronger reasons.
- Only challenge the amount of the fine, without lifting the prohibition.
- Continue the appeal, with all the legal risks.
Ripple’s chief lawyer Stuart Alderoty has indicated that the company is going to talk to the SEC again.
No price response, but a lot of attention
The pronunciation caused light price pressure on XRP, but did not lead to panic on the market. Nevertheless, the case remains in the spotlight among investors. The conflict between Ripple and the SEC serves as an important indicator of how American judges deal with regulations in the crypto sector – and the outcome can have far -reaching consequences for the entire industry.
Source: https://newsbit.nl/rechter-blokkeert-schikkingspoging-tussen-ripple-en-sec-wat-is-er-gebeurd/
