In a recent development in the ongoing XRP lawsuit, Judge Analisa Torres has denied both Ripple and the U.S. Securities and Exchange Commission’s (SEC) motion for an indicative ruling. The decision, which has left the crypto community buzzing, comes as a significant setback for Ripple as it seeks to resolve its prolonged legal battle with the regulatory agency.
Judge Torres Denies Relief Request in XRP Lawsuit
According to legal expert James Filan, the court dismissed Ripple and the SEC’s motion on grounds that it was “procedurally improper.” Judge Torres clarified that the request to vacate the injunction against Ripple and reduce the civil penalty from $125 million to $50 million required a motion under the Federal Rule of Civil Procedure. Both parties failed to address the necessary criteria for such a relief request, leading the court to reject their motion.
The ruling comes after the SEC filed a proposed settlement with Ripple last week, aiming to resolve key issues, including the alleged illegal sale of securities. However, as Judge Torres noted, such a motion must demonstrate “exceptional circumstances,” which neither Ripple nor the SEC sufficiently established.
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What’s Next for Ripple and the SEC?
Legal analyst Fred Rispoli stated that the parties are likely to refile their motion under the correct procedural framework. However, he emphasized that the language of Judge Torres’ ruling suggests that securing the requested relief will not be straightforward. The court highlighted the need to assess whether the proposed consent decree is “fair, reasonable, and in the public interest.”
Meanwhile, Ripple’s Chief Legal Officer Stuart Alderoty addressed the court’s decision in a recent post on X, stating that the ruling does not alter the previous finding that XRP is not a security. Alderoty assured the community that Ripple and the SEC remain aligned on settling the case and will proceed with their efforts to resolve the matter.
Market Impact: XRP Price Slips Amid Legal Uncertainty
Following the ruling, XRP’s price experienced a decline, dropping over 4% to trade at approximately $2.4. Analysts warn that continued legal uncertainty could weigh on the token’s price in the near term, particularly if the refiled motion faces further setbacks in court.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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