- Stuart Alderoty (Ripple Chief Legal Officer) emphasized the fact that Ripple has won previous court cases, which included the classification of the XRP currency as a not-a-security.
- Analisa Torres, District Judge of the district of Los Angeles County, called this motion procedurally inappropriate and a requirement of a higher standard of legal standards under Federal Rule of Civil Procedure.
Stuart Alderoty is the Chief Legal officer at Ripple. He has responded strongly to U.S. Judge Analisa Torres latest ruling. In her ruling of May 15, Judge Torres rejected the joint request by Ripple and Securities and Exchange Commission for an indicative decision. The motion was to dissolve an injunction Ripple’s $125-million civil penalty for violations of securities law is reduced.
Ripple CLO Remains Confident Despite Motion Dismissal
Ripple CLO confirmed that XRP remains legal despite the court’s recent decision. He wrote,
Ripple won’t be affected by today’s ruling (i.e. that XRP doesn’t qualify as security, etc.). This is about procedural concerns… Ripple and the SEC are fully in agreement to resolve this case and will revisit this issue with the Court, together.
As Judge Torres stated, “The motion is DENIED” The request was ruled. “procedurally improper.” They asked that a settlement be approved under rule 62.1 of Federal Rules of Civil Procedure. The court determined that this motion didn’t meet the legal standard for relief.
Citing SEC V. Citigroup Markets, Inc. Judge Torres said “The district court must ‘determine whether the proposed consent decree is fair and reasonable, and whether the public interest would not be disserved.'” She added that she was also a mother. “What matters is the remedy sought, not how the parties seek it.”
Ripple & the SEC asked the court for a ruling. “(1) ‘dissolve’ the Court’s injunction prohibiting Ripple’s unlawful offer and sale of securities… and (2) reduce the $125,035,150 civil penalty… to $50 million.” However, Judge Torres ruled that it was an attempt to get the motion dismissed. “vacate significant portions of the Final Judgment.” She added: “This request is properly made under Federal Rule of Civil Procedure 60.”
Judge Torres further noted that Rule-60 relief was granted. “only upon a showing of exceptional circumstances.” Judge emphasized that the judge. “The parties have made no effort to satisfy that burden here; their request does not even mention the rule.”
Also, she rejected framing the motion as an offer of settlement. According to the filing, “By styling their motion as one for ‘settlement approval,’ the parties fail to address the heavy burden they must overcome to vacate the injunction and substantially reduce the Civil Penalty.”
Ripple’s SEC case: previous rulings
In order to prove that the court’s judgments are binding, it referred back to its previous rulings. Ripple was declared illegal in July 2023. “offered and sold unregistered securities in violation of Section 5 of the Securities Act.” The August 2024 final judgment was based on this conclusion, which led to Ripple’s permanent suspension of similar activities and an $125 million penalty.
In 2024 the court decided to delay the implementation of the verdict until both sides had time to settle the dispute. “The Court stayed enforcement… and ordered Ripple to deposit into an interest-bearing account an amount equal to 111% of the Civil Penalty,” Note the date of filing.
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Source: www.crypto-news-flash.com
