Ripple
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2and the U.S. Securities and Exchange Commission (SEC) have jointly submitted a status report to the New York-based U.S. Court of Appeals for the Second Circuit. Both parties have requested the suspension of the ongoing appeal process. This move comes after a previous appeal to District Judge Analisa Torres to amend the final ruling, which is considered a prerequisite for dismissing appeals. Should Judge Torres refuse to alter her decision, the appeal process may continue, potentially prolonging settlement talks.
Parties Urge Suspension of the Appeal Process
The request to suspend the appeals was first made following an agreement reached between the parties in April. This new joint submission reaffirms their wish for the appeal process to be placed on hold. Ripple and the SEC are adamant about keeping the appeal process suspended.
The primary reason for this request lies in the high-risk application submitted to Judge Torres, urging a change in the final decision. The parties argue that the case presents “extraordinary circumstances.” However, Torres has previously indicated that even if the case is remanded to the district court, there is no compelling reason to alter the final decision. If Judge Torres agrees to amend the final ruling, Ripple and the SEC plan to withdraw their appeal applications, marking a significant turning point in the case. XRP backer and attorney John Deaton predicts that Torres will not rush into any decision to amend the final ruling.
Requests for Penalty Reduction and Ban Removal
In a settlement framework proposed in April, the SEC agreed to significantly reduce the financial penalty imposed on Ripple. The regulatory body suggested reducing Ripple’s payable amount to $50 million. Additionally, the SEC requested the removal of a ban imposed by Judge Torres in August last year. The ban prohibited Ripple from selling XRP coins to institutional investors in the U.S., a restriction that is critically important for the company’s business operations. Under the leadership of the former SEC Chairman Gary Gensler, the regulatory body filed an appeal notice at the beginning of October. Ripple’s counter-appeal promptly followed this action. The SEC is required to submit its next status report by August 15, 2025.