Key Takeaways:
- Judge Torres has denied the joint motion, upholding the injunction on Ripple’s institutional XRP sales.
- Ripple may halt such sales unless it complies with securities laws or registers with the SEC.
- Legal experts suggest a possible settlement between Ripple and the SEC could be on the horizon.
The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) took another sharp turn after Judge Analisa Torres denied a joint motion from both parties, leaving Ripple’s permanent injunction for institutional XRP sales in effect. The ruling raises new questions about Ripple’s ability to continue institutional sales and how the company will proceed in light of the legal roadblock.
Judge Torres’ Ruling Leaves Ripple in Legal Limbo
Judge Torres’ latest decision stems from her previous summary judgment, which categorized Ripple’s historic institutional sales of XRP as unregistered securities offerings. Although XRP’s legal status for programmatic and retail sales remains unaffected, the court has upheld the permanent injunction and a monetary penalty associated with institutional transactions.
Ripple now faces two options, according to Chief Legal Officer Stuart Alderoty: either drop its appeal challenging the institutional sales finding or proceed with the appeal. Alderoty emphasized that despite the setback, “XRP’s legal status as not a security remains unchanged. In the meantime, it’s business as usual.”
Legal Experts Hint Ripple May Halt Institutional Sales
Amid ongoing speculation, crypto lawyer Bill Morgan pointed out that Ripple likely anticipated this outcome and may have already made internal adjustments. According to Morgan, Ripple restructured its institutional the coin sales to align with the summary judgment issued in July 2023.
One point I enjoyed reading from Fred’s 📖 was his observation on @s_alderoty referring to Ripple’s historic institutional sales.
— bill morgan (@Belisarius2020) June 27, 2025
Ripple had obviously prepared for the likelihood of a permanent injunction on institutional XRP sales after the summary judgment decision in July… https://t.co/mElprvC6gY
“Ripple had obviously prepared for the likelihood of a permanent injunction… and implemented a means of selling XRP to institutions,” Morgan stated, suggesting that Ripple had foreseen potential restrictions and acted proactively.
Can Ripple Still Offer XRP to Institutions?
In response to concerns from the XRP community, former SEC regional director Marc Fagel clarified that Ripple could still conduct institutional sales — but only through a registered securities offering. This aligns with the SEC’s interpretation that institutional sales must adhere strictly to federal securities laws.
Also Read: Ripple Faces Legal Setback, But XRP ETF Momentum Builds for 2025
Echoing this view, Bill Morgan added that the ruling injects significant uncertainty into Ripple’s business operations, as any further institutional sales would need to fully comply with the Securities Act.
Settlement or Appeal? Ripple’s Next Move Awaits
With legal analysts like Fred Rispoli suggesting that both parties may ultimately drop their appeals and settle, the industry now waits to see whether Ripple will continue its fight or bring the years-long case to a close. For now, the denial of the motion underscores the regulatory hurdles Ripple still faces — particularly in dealing with institutional investors.
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
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
