The Ripple-SEC lawsuit has taken a new turn. Judge Analisa Torres has firmly denied the joint request from Ripple and the U.S. regulator SEC. As a result, legal uncertainty surrounding XRP continues despite attempts to reach a settlement.
Ripple-SEC Lawsuit Continues After Latest Setback
In a pivotal development in the ongoing Ripple-SEC lawsuit, Judge Torres has rejected the motion from both parties seeking an “indicative ruling.” Through this request, Ripple and the SEC aimed to revisit key aspects of the final judgment, including the civil penalty and injunction. However, the court ruled that the motion was “procedurally improper.”
The judge explained that such a request should have been filed under the Federal Rules of Civil Procedure, which outline how parties may seek relief from a final judgment. By presenting their motion as a settlement approval, Ripple and the SEC bypassed the higher legal threshold required. Judge Torres emphasized that relief can only be granted under “exceptional circumstances,” and that neither party demonstrated such conditions.
Request to Reduce Penalty Rejected
The SEC recently filed a proposed settlement that included reducing Ripple’s civil penalty from $125 million to $50 million. The Commission also asked the court to lift the injunction imposed on Ripple. The aim was to accelerate the resolution of the legal battle.
Judge Torres, however, criticized the lack of a solid legal foundation. She noted that both parties failed to cite the appropriate rule or justify why their request met the required standards. As a result, not only was the motion denied, but the court also made clear that future efforts will need stronger legal arguments.
Legal analyst Bill Morgan had previously cautioned that Judge Torres’ decision on the matter remained uncertain. He pointed out that the judge must be convinced that any settlement serves the public interest. This latest rejection confirms that such confidence has not yet been established.
Final Thoughts
This ruling represents a blow for Ripple, which was seeking a quicker resolution to the case. At the same time, it underscores Judge Torres’ commitment to upholding procedural law. The Ripple-SEC lawsuit remains a prolonged and pivotal case within the crypto industry.
