Ripple and SEC Seek Relief Modification In XRP Lawsuit, Lawyer Explains

According to a recent X post by former SEC lawyer Marc Fagel, Ripple and the SEC seek to modify the court order in the XRP lawsuit. The lawyer notes that both parties envision relief enhancement via their joint motion for an indicative ruling. He adds that while the court has paved the way for a settlement in the Ripple vs SEC case, the parties themselves are causing delays.

Relief Modification Intended in XRP Lawsuit

In a recent X post, ex-SEC lawyer Marc Fagel offered valuable insights into the protracted XRP lawsuit, revealing both parties’ intention to seek relief modification. In particular, Ripple and the SEC aim to revisit the remedies ordered by the court.

Recently, both parties filed for an indicative ruling in the Ripple vs SEC case despite the court’s initial dismissal. And later, Ripple filed a supplemental letter to further boost the motion, emphasizing that dissolving the injunction wouldn’t exempt them from securities laws. They would still need to follow the law regardless of the injunction. The proposed settlement, which includes a reduced penalty, takes into account appellate risks and would bring an end to the prolonged litigation. By granting an indicative ruling, Ripple would be put on the same footing as other crypto firms whose cases the SEC has dismissed at its discretion.

According to Fagel, the court has already ruled on the matter, finding Ripple liable for hundreds of millions of dollars in unregistered XRP sales, which were classified as securities. As a result, the judge imposed a $125 million penalty and barred them from future violations. However, both Ripple and the SEC are now prolonging the case with the intention of modifying the ruling.

Notably, his thread comes in response to an X user’s query about Judge Analisa Torres’ ruling, where he expresses doubts about why the case wasn’t wrapped up sooner. Reacting to the question, Fagel wrote,

She did. She found Ripple illegally raised hundreds of millions of dollars from unregistered securities sales, penalized them $125m, and enjoined them from further violations. But now the SEC and Ripple are trying to get her to change the remedies she ordered.

Is the SEC Responsible for the Ripple Case Delay?

Further, clearing doubts on the SEC’s role in the Ripple case delay, Fagel asserted that the commission isn’t dragging out the lawsuit. Recently, XRP lawyer Bill Morgan also suggested that Ripple, rather than the SEC, is responsible for the delay in the legal proceedings. Morgan stated,

Rather than cause the delay the SEC is actually bending over backwards to help ripple have the injunction dissolved. Ripple and the SEC would have settled months ago but for Ripple wanting to dissolve injunction.

Meanwhile, Fagel pointed out that the charges were filed under the previous leadership during the Trump/Clayton era, long before Gary Gensler took over. He added that the case is now pending a judicial decision. His statement read,

The charges were brought under Trump/Clayton, long before Gensler was appointed. And the SEC isn’t dragging anything out; the matter is before a judge for decision.

SEC’s Appeal Shifts Ripple’s Stance

XRP lawyer Bill Morgan has been a vocal advocate and commentator on the Ripple vs SEC lawsuit since the case began. In his recent tweet, he shared insights on the SEC’s new approach that led to the current progress in the Ripple case. This statement follows Bill Morgan’s recent prediction that a settlement in the Ripple vs SEC case could be reached within weeks if the judge approves the joint motion.

Morgan believes the SEC’s appeal changed everything in the XRP lawsuit. Without the appeal, Ripple might have accepted the court’s decision. He stated,

The SEC’s new policy towards enforcement has encouraged Ripple to seek more than it would have been satisfied with or lived with before the SEC filed its appeal.