The recent rejection of the joint motion by Ripple and the SEC by Judge Analisa Torres has brought the ongoing SEC-Ripple lawsuit into a new phase. Legal experts and community attorneys are now assessing what lies ahead. Although the proposed settlement was blocked for now, both parties appear determined to find a resolution.
SEC-Ripple lawsuit: Legal Uncertainty Continues
According to crypto lawyer John Deaton, Judge Torres has made it clear that reversing an earlier ruling is not something she takes lightly. The SEC has spent five years pursuing Ripple, investing thousands of hours in legal proceedings. Now, the agency wants to walk back large parts of the outcome, raising questions about the credibility of its approach.
Judge Torres stated that Ripple and the SEC failed to meet the formal legal requirements for requesting relief from a final judgment. Any future request will need to demonstrate that vacating the injunction and reducing the penalty would serve both the public interest and the rights of institutional XRP holders. Until then, the legal uncertainty around Ripple persists, which may prevent the XRP price from gaining upward momentum.
[xrpchart]
What Are the Next Steps for Ripple and the SEC?
Following the ruling, Ripple’s Chief Legal Officer Stuart Alderoty stated on X that Ripple’s prior victories—such as the fact that XRP itself is not a security—remain intact. He emphasized that this setback concerns procedural issues only and that Ripple and the SEC will jointly return to court to resolve the matter.
Pro-XRP attorney Bill Morgan outlined the potential legal roadmap for both parties:
- They will first file a joint request to the Court of Appeals for a limited remand, allowing Judge Torres to address the revised agreement.
- If approved, they will file a new motion before Judge Torres seeking the agreed-upon relief.
- Once the injunction is lifted and the reduced $50 million penalty is approved, both sides would move to dismiss the appeal and cross-appeal in the Second Circuit Court.
Final Analysis
Although the court denied the initial motion, the case is far from over. Both Ripple and the SEC remain aligned in their desire to reach a final settlement. The coming weeks will be crucial—can they draft a new proposal that meets the court’s standards? Or will the Ripple-SEC lawsuit continue to drag on into another chapter?
