Ripple Labs and the U.S. Securities and Exchange Commission (SEC) are preparing to jointly file a motion under Federal Rule of Civil Procedure 60. This motion seeks to lift the court injunction restricting Ripple’s sales of XRP to institutional investors and reduce the civil penalty imposed on the company to $50 million.
The move follows the court’s denial of a previous attempt to address these issues under Rule 62.1. Filing the Rule 60 motion is expected to extend the deadline for the next status report in the long-running lawsuit by up to 60 days.
The injunction has significantly impacted Ripple’s business strategy, preventing the company from pursuing an initial public offering (IPO) for at least four years. This limitation has hindered Ripple’s ability to compete effectively in the market against rivals like Circle and Kraken, which have pursued public listings.
Legal analysts interpret the planned motion as a strategic effort by both parties to address the ‘exceptional circumstances’ previously noted by Judge Analisa Torres. The outcome of this motion could substantially influence the final resolution of the case.
The court’s decision on the Rule 60 motion holds broader implications beyond Ripple. It has the potential to set important precedents for the regulation of digital assets in the United States and will significantly impact Ripple’s operational freedom and future financial planning.