SEC files status report on Ripple XRP appeals pending court decision

The US Securities and Exchange (SEC) has filed a status report with the Court of Appeals, informing that the agency and Ripple Labs had submitted a joint stipulation to dismiss their appeals and work toward closing the XRP case, according to an update from defense lawyer James Filan.

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The filing fulfills a requirement set in July, when the parties asked the appellate court to hold proceedings in abeyance while they sought to finalize settlement terms.

That request followed a renewed motion in the Southern District of New York proposing to reallocate Ripple’s $125 million penalty, with $50 million going to the SEC and $75 million back to Ripple. Judge Analisa Torres rejected the bid, however.

The SEC and Ripple are now awaiting the Court of Appeals’ approval of their stipulation to formally dismiss the appeals.

Once dismissal is granted, the case proceeds to enforcement, obliging Ripple to satisfy the $125 million penalty and comply with the injunction’s terms, according to the SEC.

That outcome will leave Judge Torres’ ruling intact, under which XRP is not deemed a security in secondary trading, but certain institutional sales remain subject to securities laws.