As the long-running legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) nears a critical juncture, the crypto community is watching closely for Judge Analisa Torres’ next move. The latest joint motion filed by both parties could mark a turning point for XRP, with significant implications for the token’s future and the broader crypto market.
Key Developments in the Ripple vs. SEC Case
• Ripple and the SEC have jointly requested Judge Torres to amend her final judgment, a move that could dissolve the injunction restricting Ripple from selling XRP to institutional clients and adjust the penalty allocation between the parties .
• The proposed settlement would see the SEC retain $50 million, while Ripple would receive $75 million from funds currently held in escrow .
• This joint motion follows a previous attempt for an indicative ruling, which was denied due to a lack of “exceptional circumstances.” The new filing aims to address this by arguing that modifying the judgment is essential for the settlement and would save court resources by avoiding further litigation .
The Strongest Argument: Efficiency and Finality
According to legal expert Bill Morgan, the most compelling point in the joint motion is that amending the final judgment is a key condition for both parties to settle. By lifting the injunction and adjusting the fine, the court could prevent endless appeals and streamline the resolution process. The motion also cites changes in SEC policy and recent case dismissals as further justification for the court to exercise its discretion .
Skepticism and Market Reactions
Despite the optimism from Ripple’s legal team, critics argue that the standard for “exceptional circumstances” remains high. Some believe that the intention to settle may not be enough to persuade the court, and that the parties are putting pressure on Judge Torres to alter her previous decision. However, pro-Ripple lawyer John Deaton estimates there is a 70% chance the judge will approve the motion, reflecting cautious optimism within the XRP community .
What’s Next?
The SEC faces a June 16 deadline to update the court on the status of settlement negotiations . While this is not the date for a final judgment, the report could confirm whether both sides are ready to withdraw their appeals or if more time is needed. If the settlement is finalized, it could pave the way for institutional sales of XRP under regulatory oversight and bring much-needed clarity to the market .
“The parties are really imposing a fait accompli on the court and hoping the Judge exercises her discretion to accept and allow it,” said Bill Morgan. “I think she will grant the motion but it would not surprise me at all if she does not.”
For now, traders and investors are keeping a close eye on the court’s next steps, as the outcome could have a lasting impact on XRP’s price and the regulatory landscape for digital assets.
