Ripple’s legal battle with the SEC faces another hurdle. The case has not been settled yet, and the main reason appears to be a court-issued injunction.
Judge Torres’ ruling prevents Ripple from selling XRP directly to customers. While there are workarounds, Ripple wants the restriction removed entirely. However, dissolving an injunction is not a simple process.
Once a court issues an injunction, both parties cannot simply agree to ignore it. Legal steps must be taken to lift it. The Federal Rules of Civil Procedure outline ways to seek relief from a judgment, but courts do not grant such requests easily. A significant change in circumstances must be demonstrated.
Ripple might argue that the SEC is revising its crypto regulations, making the injunction unnecessary. However, the court’s ruling was based on the Howey test, a legal standard established by the U.S. Supreme Court. Regulatory changes alone may not be enough to overturn the decision.
Ripple faces a complex legal process
The process is complex and requires careful execution. Judges have broad discretion in these matters, meaning Ripple must draft a strong motion to convince the court. The SEC also needs to support the request, adding another layer of difficulty.
If both sides agree, they can file to dismiss their appeals before Ripple submits its motion to the trial court. The judge will then decide whether to dissolve the injunction, which could take additional time.
Legal experts believe a resolution could come by April or May. The first step would be dismissing the appeals, likely in April. After that, Ripple’s motion would be filed, and the court would need time to review it. If successful, the ruling would remove a major legal barrier for Ripple.
This case has dragged on for years, with significant implications for the crypto industry. The outcome could shape how regulators approach digital assets in the future. For now, Ripple must carefully navigate the legal system to achieve its goal of lifting the injunction.
