NY Judge slapped the SEC, Ripple’s second request for a imprisonmental decision on the suggested $ 50m regulating

A Judge in New York denied a joint request from the US Securities and Exchange Commission (Sec) and Ripple Labs for him to approve a proposed agreement to redeem Ripple’s civil penalty to $ 50 million and dissolve permanent injunction against the firm.

This is the proposed elimination of permanent injunction, and not the $ 50 million civil penalty – discount from the original $ 125 million imposed by the court last year – as if the sticking point for district judge Analisa Torres of the Southern District of New York (SDNY).

“In fact, if the court should not be concerned about the ripple that violates the law, why do the parties want to eliminate the injunction saying to Ripple, ‘Follow the law’?,” Torres wrote. “When the court imposed the injunction, it was done because it found a ‘reasonable possibility’ that Ripple would continue to violate the laws of federal security. It did not change, nor did the parties claim to have it.”

The request arrived amidst the SEC arrangement changes following US President Donald Trump’s election in January and the subsequent removal of former SEC Chair Gary Gensler. Under the new SEC leadership, the regulator adopted a more crypto-friendly regulation of posture, creating a Crypto Task Force led by Commissioner Hester Peirce and dropping a host of investigations and proceedings against crypto companies. However, as Torres pointed out in his decision, most of those cases were removed by the SEC “before a court found a violation of the laws of federal security.”

“Regardless of the changes in leadership, the SEC has avoided hitting between arguments in the ongoing trial to protect the agency’s credibility,” said Corey Frayer, director of investor protection in the Consumer Federation of America. “In providing favors to crypto companies, the SEC leadership has chosen to break a 90 -year reputation carefully built by the agency.”

This is the second request of the SEC for a implicit decision – essentially, a preview of what a lower court will do if a higher court will return the case to the lower court for a final decision – which Torres rejected. In May, he Slapped the first in such an attempt, Cites both the scope and methods of the flaws. Earlier this month, parties tried again, filing A new, expanded request In the court’s argument that the “extraordinary events” warranted the change of Torres’ final judgment.

Torres was completely unstoppable by the arguments of Sec and Ripple, written: “The court respects the freedom of the parties to resolve their disputes. It is also true that the SEC, like any other law enforcement agency, has decided to change the course after an action enforcement has begun.

If the parties “really want to end this trial today,” Torres wrote, they have two other options: they can withdraw their ongoing appeal in the case, or they can take an appeal.

“Any choice involves ordering this court to release the ripple of its obligations under the law,” Torres said.