Fact Check: Will Rule 60 Motion Lift Ripple’s IPO Restrictions?

Ripple and the U.S. SEC are back in front of Judge Analisa Torres again. This time they are asking for an indicative ruling under Rule 60(b) of the Federal Rules of Civil Procedure.

What is Rule 60(b)?

In simple terms, Rule 60(b) allows a court to modify or dismiss a final judgment if there are “exceptional circumstances” — unusual or important new reasons to undo a decision that’s already been made.

Why Are Ripple and the SEC Doing This?

Last year the court ruled against Ripple and ordered them to pay a $125 million fine and barred them from selling XRP to certain buyers in violation of U.S. securities laws (injunction). Ripple had to put the full penalty in escrow while both sides appealed the decision.

Now both Ripple and the SEC have reached a settlement and want to close the case. To do this they are asking the court to:

• Dissolve (remove) the injunction that restricts Ripple’s XRP sales
• Release the escrowed funds: Ripple would pay $50 million to the SEC and get the rest back

However, because the case already reached a final judgment, they need the court’s permission through a Rule 60(b) motion