Judge Keeps Injunction for Ripple and SEC
A New York judge has rejected a bid from Ripple and the U.S. Securities and Exchange Commission (SEC) to lift an injunction that could significantly reduce fines against Ripple. Judge Analisa Torres referenced SEC's earlier claims of potential legal violations by Ripple. While Ripple and the SEC sought to cut the fine by 60% and dissolve the injunction, Torres found no change in circumstances. This dispute arose after the SEC charged Ripple with unlawfully raising $1.3 billion through XRP sales in 2020. A contradiction exists as programmatic sales were deemed legal, but direct ones to investors were not, leading to a $125 million penalty. Ripple's CEO announced a resolution with the SEC, though the fine issue persists. Possible changes in SEC’s approach to cryptocurrency regulation have occurred recently. Judge Torres asserts that to change a judgment, there must be extraordinary circumstances. Ripple and the SEC can either appeal or withdraw. Neither party commented on the decision.
FAQ
❓ What was the reason for the SEC's initial case against Ripple?
The SEC accused Ripple of raising $1.3 billion through the unregistered sale of XRP.
❓ What was Judge Torres' ruling about Ripple's sales?
She ruled programmatic sales were legal, but sales to institutional investors violated securities laws.
❓ What options do Ripple and the SEC have following the latest ruling?
They can appeal the court's decision or withdraw their appeals.