Ripple v. Attention remains on the SEC as people in the field observe Judge Torres’ denial of the SEC’s request for an indicative ruling.
Attorney John Deaton said that certain actions need to take place before the XRP judgment can be changed. Judge Torres dismissed the SEC’s motion as procedurally improper, intensifying scrutiny of the Commission’s strategy in the ongoing lawsuit.
Deaton urges SEC to admit fault and cooperate
John Deaton stated that the SEC must acknowledge its previous errors for a new judgment to be issued in the XRP case. He believes the agency should withdraw earlier arguments and work jointly with Ripple. Deaton added that referencing current legislative efforts in Congress could help reshape the Commission’s position on crypto assets.
He noted that the SEC must recognize crypto tokens as more aligned with commodities rather than securities, suggesting they may not fall under SEC regulation. The denied motion had included a request to lift the injunction and reduce the civil penalty to $50 million. According to Deaton, convincing Judge Torres would require showing that Ripple’s XRP sales caused no harm and that the injunction is restricting Ripple’s ability to operate, especially with financial institutions.
Legal challenges ahead for judgment modification
Attorney Fred Rispoli agreed with Deaton’s views and emphasized the difficulty of changing the existing judgment. He recommended that both parties submit a 25-page motion listing prior dismissed cases as part of their new filing. Rispoli also urged the SEC to submit official declarations from Commissioners, accepting that the agency failed to provide clear crypto guidance.
He estimated it could take up to three weeks for both sides to complete filings. Judge Torres may then require an additional one or two weeks to decide. The legal uncertainty affected market sentiment, with XRP’s price falling over 4% following the ruling. At the time of reporting, XRP was trading around $2.40, down nearly 2% in 24 hours.
Internal SEC disagreements surface over ripple deal
There was another twist in the case when disagreements started among members of the SEC. Ripple and the SEC requested that the August 2024 injunction be dropped and that Ripple be allowed to keep $75 million out of the original $125 million civil fine. Commissioner Crenshaw stated the move would weaken oversight and damage the authority of the court. The comment showed disagreements developing in the SEC and made people question their regulation of cryptocurrencies.