The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission is approaching another pivotal stage. Recent developments have refocused attention on the expected indicative ruling that could influence the scope of penalties and injunctions, but will not impact the broader legal classification of XRP.
According to legal expert and XRP community figure Bill Morgan, speculations that the upcoming decision will change the curve of digital asset regulation in the United States are inaccurate. He stated that the impending ruling will be on whether there are exceptional circumstances that will warrant the court to mitigate the penalty Ripple has received and to lift the current injunction imposed.
Indicative Ruling to Address Penalty and Injunction Only
In a detailed post shared via X, Morgan emphasized that the joint motion filed by both parties is procedural. He clarified that it seeks an indicative ruling, not a substantive change to any existing court decision.
Analisa Torres previously denied a similar motion by explaining that it was procedurally wrong to take any such decision until she was given jurisdiction over the case.
Morgan added that if the indicative ruling is awarded, the parties would seek a limited remand by the Second Circuit. This would give Judge Torres an opportunity to speak legally on the revision of the relief proposal. In accordance with that offer, $50 million would go to the SEC, and \$75 million would be refunded to Ripple.
Until this happens, the appeals ongoing on the Second Circuit stage would be called off, and both the appeals of the SEC and cross-appeals of Ripple would be denied.
Summary Judgment on XRP Classification Remains Intact
Notably, Morgan assured that the two parties have stipulated not to change the July 2023 summary of Judge Torres. That conclusion held that Ripple’s programmatic sales of XRP were not securities offerings.
Morgan wrote that it is not a judgment that will transform the status of digital assets in the U.S.. He has included a court filing as a piece of evidence that the current legal situation will not be completely overturned, changed, or altered.
Due to that, the landmark ruling declaring XRP a non-security that could be true in some cases will remain. Clarity is regarded as a fundamental basis for continuous and future regulatory debate in the digital asset field.
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