- The parties applied for unison to reduce the fine imposed on Ripple, as well as to lift an injunction – justification: extraordinary circumstances.
- The joint application could open the door to the agreement.
Ripple and the US stock exchange supervision SEC have taken a new legal step that could lead to the end of the procedure. Both parties have made the joint application to lift the current injunction and reduce the fine imposed on Ripple to $ 50 million.
The application was asked for the advice of the court.
The journalist Eleanor Terrett has up X An update released in which she specifies that both Ripple and the SEC asked the Manhattan district court to approve the release of $ 125 million from the trust account. The funds were originally reserved as a punishment. The urgency of the application is of the greatest importance, since an update must be submitted to the 2nd circuit by June 16. The appellate court could arrange the submission to grant an additional period of sixty days for the review.
In the application, legal experts see an indication that both sides are willing to enclose existing differences. The lawyers on both sides referred to “extraordinary circumstances” when submitting the application. Legal experts believe that if the application is granted to it, the way for the other outstanding decisions would pave up, such as: B. the delays associated with the ongoing appeal procedure.
Ripple IPO dreams paused-court decision blocks XRP sales
Ripple’s efforts to go to the stock exchange have continued to stall. The current judicial disposition prevents the company from driving XRP, which will most likely remain in force, unless the court agrees to lift the disposal. Experts say that every way to an IPO within the next four years presupposes that this ban must be canceled first.
Although the SEC has rejected such applications on the basis of rule 62.1 in the past, it now seems to be more willing to examine an application on the basis of rule 60 if substantial evidence is submitted. Previously, judge Torres had made it clear that real changes in circumstances would enable such a review. The court must now decide whether Ripple and the SEC reach the required threshold.
The lawyers emphasized that the current situation unnecessarily delayed both the appeal procedure and larger comparative negotiations. They warned that the outcome of the legal dispute will continue to extend if no measures are taken, which will affect the future business processes and the strategic planning of Ripple.
Agreement between Ripple and the Sec can reduce fine
Ripple and the SEC have agreed on this common lawsuit to avoid future proceedings in the appeal procedure. If the application is approved, the fine would be reduced from $ 175 million to $ 50 million, but also postponed the appeal period. Such a result would make it possible for the two to continue the efforts to complete the case.
According to legal sources, this step could also change the status of the current injunction. The result could turn the case upside down by eliminating one of the largest hurdles for Ripple. In this step, legal experts see a serious indication that both sides could move to a mutual result instead of continuing the legal dispute in court.
Judge Torres still has to make a decision on the application. In view of the impending deadlines, however, the SEC and Ripple are under the pressure of setting up the affairs that have been going on for years. It is uncertain whether one of the two can convince the court with his argument, but the monetary and regulatory influence of a decision could be immense.
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