XRP News Today: Judge Denies Ripple SEC Motion, XRP Supply Squeeze Looms

A significant update in the ongoing SEC v. Ripple case has reignited discussions about a potential XRP supply shock. Judge Analisa Torres recently denied a joint request from the SEC and Ripple to dissolve a prior court injunction and reduce Ripple’s financial penalty. This decision has reinforced the setup for a massive XRP supply squeeze, which could have dramatic implications for the asset’s price and availability.

Judge Torres' ruling, filed on June 26, rejected the motion for an indicative ruling. This motion was central to Ripple’s efforts to fully resolve the case and move forward without ongoing legal uncertainty. With the court’s denial, the prior restrictions remain in place, binding Ripple to the terms of the injunction, including limitations on the use of XRP held in escrow. This outcome delays the company’s ability to access or distribute billions of XRP that have been locked for years, significantly limiting the token’s circulating supply.

Reacting to the development, Jake Claver, founder of QFOP and a respected voice in the digital asset space, posted on X: “The setup for the MASSIVE supply shock continues.” Claver has consistently highlighted how Ripple’s legal constraints are reducing available market liquidity for XRP. Claver’s insight builds on the idea that with Ripple unable to freely unlock or distribute escrowed XRP, and with decreasing exchange balances indicating steady accumulation, a major supply crunch is forming beneath the surface. This shock would be amplified if, or when, Ripple gains legal clearance to resume its full operations, potentially unleashing demand from institutional partners and cross-border payment corridors.

Recent data further supports Claver’s thesis. On-chain analytics have shown that XRP balances on major centralized exchanges have steadily declined over the past 12 months. Long-term holders and private wallets appear to be absorbing available liquidity, while Ripple’s legal constraints mean no fresh supply is entering the market from escrow. In the past, Ripple would unlock up to 1 billion XRP each month, re-locking what wasn’t used. However, due to the ongoing lawsuit and injunctions, this practice has been largely frozen, further compounding the scarcity.

Judge Torres’ ruling doesn’t end the case but halts a key procedural step toward settlement. Until a new agreement is accepted by the court, Ripple remains restricted, and XRP’s available supply will continue to tighten. For XRP supporters and market analysts like Claver, this legal bottleneck is more than a procedural delay; it’s a setup for a dramatic supply and demand imbalance. If Ripple is ultimately cleared to resume its full market operations, the sudden influx in demand, especially from Ripple’s On-Demand Liquidity (ODL) partners, could collide with severely limited supply, triggering what Claver and others describe as a “massive supply shock.”