Analyzing the Ripple vs SEC Legal Battle: Insights and Speculations

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The Ripple and SEC Legal Saga: Will Judge Torres Reopen the Case?

In the ongoing legal battle between Ripple Labs and the US Securities and Exchange Commission (SEC), Judge Analisa Torres faces yet another request to reconsider her final judgment. However, the real intrigue in the world of cryptocurrency law lies not in the procedural aspects but in the psychological dynamics at play. Will Judge Torres accede to the parties’ renewed joint motion, or will she reiterate the necessity for settlement on her terms? Legal experts Bill Morgan and Fred Rispoli offer contrasting perspectives on this high-stakes issue.

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Is Judge Torres Likely to Dismiss the XRP Settlement Again?

Bill Morgan, a pro-Ripple legal expert from Australia, often shares insights that resonate widely among XRP investors. He warns that the timing of the court’s decision could reveal its inclination. “It only took seven days for Judge Torres to dismiss the last joint motion to revise the judgment by reducing the fine and lifting the injunction. A similar timeframe for deciding the current motion may not bode well for approval,” he noted on June 15. Morgan advises the XRP community to avoid conflating speed with judicial favor.

Nonetheless, Morgan discerns a substantial argument that could sway the judge to conclude the four-year-long litigation. He believes the strongest point in the motion is the necessity of altering Judge Torres’s final orders for the settlement agreement between the SEC and Ripple to proceed. “If the orders are amended to reduce the fine and dissolve the injunction, the case will be resolved, saving court resources by concluding the appeal and cross-appeal,” he explains.

Despite his analysis, Morgan remains cautious, reminding readers that the parties had the option to simply end the appeal process and accept the final orders. “Ripple sought more,” he asserts, acknowledging that the parties are presenting a fait accompli to the court, relying on the judge’s discretion. “Intuitively, I believe she may approve the motion, but it wouldn’t be surprising if she doesn’t,” he concludes.

Rispoli’s Perspective: A Bleak Outlook

Conversely, Fred Rispoli, a US litigator with experience representing individual XRP holders, views the joint filing unfavorably. “I dislike this filing because it was evident from Judge Torres’s previous ruling that she was displeased,” he commented on June 12. Rispoli criticizes the motion for lacking the necessary contrition and detail, suggesting that a comprehensive explanation of the SEC’s shortcomings in crypto regulation, along with apologies from Ripple, would have been more effective. Instead, the filing included minimal reference to the SEC’s dismissals and the SEC Crypto Task Force.

Rispoli emphasizes the importance of judicial discretion over strict legal precedent. While he acknowledges that “the parties provide sufficient legal grounds for the court to grant the motion,” he remains pessimistic about its success. His prediction is somber: without additional context or a decision by Judge Torres to expedite the case, the motion may face the same outcome as before. He also notes that an ongoing injunction is not necessarily detrimental—Ripple can still sell XRP to institutions, albeit under different conditions compared to pre-2018, though more cautious partners may hesitate.

Conclusion: A Narrow Window of Possibility

Together, the analyses of Morgan and Rispoli create a narrow range of potential outcomes. Morgan’s cautious optimism, tempered by procedural concerns, contrasts sharply with Rispoli’s doubt that a judge, once displeased, will reconsider. Both agree that the court now faces a significant decision with considerable commercial implications: either affirm a $50 million fine without an injunction and conclude all appeals, or return the case to the Second Circuit for further proceedings, potentially extending the litigation for another year—a scenario neither party desires.

At the time of writing, XRP is valued at $2.25.

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