The endless legal battle between Ripple and the American Sec is back in the news – and the pro -XRP lawyer John Deaton recently decomposed exactly what is happening.
What is it?
The dry and the undulation reached a proposed regulation. In her:
- The dry wants to reduce Ripple’s penalty by $ 125 million to $ 50 million
- The Agency also hopes that the judge abolishes an injunction (a legal order preventing the undulation from violating the securities laws)
If the judge accepts this, the case would finally be settled and closed.
But Judge Torres rejected
Many thought that judge Analisa Torres would quickly approve the agreement, but she surprised the two sides.
According to Deaton, the judge said to them:
- They cited the bad legal rule
- They have not shown “exceptional circumstances”, a very strong legal reason – for why it should cancel a decision that it has already made.
Deaton explained that a judge cannot simply reverse an order without serious justification, especially after 4.5 years of work and resources paid in this case.
Is an agreement still possible?
Yes. Deaton thinks that the judge will probably approve of the rules possibly, which will give him about 70% of chance, but it first requires better explanation. The two parties must now show how this agreement serves both private interests (Ripple and dry) and the public interest (protecting other investors and cryptography companies).
They must also convince her that settling now would save time, money and resources for the courts and would avoid risk calls for both parties.
Why is it important?
This case was one of the largest for cryptographic regulations in the United States if the injunction is deleted and the fine has reduced:
- Ripple avoids a greater penalty
- Dry avoids risking total loss on appeal
- The case ends officially without affecting the previous decision of Judge Torres that XRP himself is not security in the United States
Deaton stressed that the judge’s previous decision would still be held, and crypto societies should still respect American securities.
