Summary

A New York judge discovered insufficiencies in the joint request by the U.S. Securities and Exchange Commission (SEC) and Ripple Labs aimed at adjusting a previously imposed settlement agreement. The agreement sought to reduce Ripple’s civil penalty to $50 million and lift the enduring injunction on the firm.

Court’s Ruling

Judge Analisa Torres reaffirmed a previous ruling maintaining a permanent injunction due to Ripple’s earlier infractions and potential risks of repeating such violations. She highlighted that the injunction’s purpose was to ensure adherence to federal securities laws and emphasized, as the SEC previously suggested, that the actions of Ripple warranted such a restriction.

Background Context

This decision coincided with recent shifts in the SEC’s leadership, which has appeared more accommodating towards the cryptocurrency sector. Despite these changes, Torres noted that the core standards of compliance cannot be waived simply due to changes in the regulatory environment.

Relevant Quotes

“If the Court should not be concerned about Ripple violating the law, why do the parties want to eliminate the injunction that tells Ripple, ‘Follow the law’?”

Torres pointedly questioned the necessity of the requested modifications, reinforcing the ongoing legal obligations placed on Ripple.

Conclusion

In her directive, Torres articulated that if the involved parties genuinely aim to resolve their litigation swiftly, they have two paths forward: they can either retract their ongoing appeals or proceed with appeals, neither of which can absolve Ripple of their legal responsibilities.