XRP Lawsuit: Judge Torres Rejects Ripple and SEC Motion

XRP lawsuit developments continue to grab headlines, as U.S. District Judge Analisa Torres has turned down the most recent joint bid from Ripple and the SEC to alter key aspects of their legal settlement. The denied motion sought an indicative ruling to both remove the permanent injunction on Ripple’s institutional XRP sales and reduce the associated financial penalties.

Eleanor Terrett, a prominent pro-crypto journalist, brought public attention to Judge Torres’s latest ruling. This follows Ripple and the SEC’s refiled motion from earlier this month, where both parties claimed exceptional circumstances warranted revisiting the initial court order. Their request aimed to eliminate the permanent ban on institutional XRP transactions and reduce the penalty to $50 million.

However, Judge Torres found the arguments unconvincing. In her written opinion, she emphasized that mutual agreement between the SEC and Ripple does not supersede the court’s standing judgment, which was established as a final and public legal determination. She noted that the examples cited by both parties did not carry the same weight—few of them included court-imposed injunctions or civil penalties. In contrast, the Ripple case distinctly involved both elements.

Judge Torres stated, “Moreover, dissolution of the injunction as a precondition to the termination of the parties’ appeals is only necessary because the SEC and Ripple made it so.” She made it clear that if both parties are truly committed to resolving the matter outside of court, they can voluntarily withdraw their respective appeals without the need for further court intervention.

The path forward remains complex. Judge Torres pointed out that if Ripple and the SEC want to amend the terms of the original verdict, the appropriate legal route is via the U.S. Court of Appeals for the Second Circuit. Utilizing this approach respects the integrity of the judicial process, rather than attempting to negotiate a workaround to a final court order.

She further added, “Neither option involves requiring this court to absolve Ripple of its obligation under the law.” Judge Torres underscored that while she supports a peaceful resolution between the parties, it cannot come at the cost of nullifying the legal findings already issued by the court.

This decision raises pressing questions about the next steps for both Ripple and the SEC. Though the court has ruled out altering the judgment without a credible appellate process, it does not eliminate the possibility of an amicable settlement. Currently, both parties have asked the Second Circuit to pause their ongoing appeal processes, indicating a mutual desire to find a resolution without extensive litigation.

Related: Expert Advice: Sell XRP If You’re Confused

As the legal tussle extends into yet another chapter, XRP holders and market watchers await clarity. The blockchain giant and the federal regulator continue to explore ways to end the prolonged litigation. Until a formal resolution or appellate decision has been reached, the case—and its ramifications for the broader crypto ecosystem—remains in limbo.