XRP News Today: Judge Denies Ripple-SEC Settlement Motion, Lawsuit Continues

Judge Analisa Torres has denied a joint motion by Ripple Labs and the Securities and Exchange Commission (SEC) seeking a path to settlement in their ongoing lawsuit. The denial comes as a significant development in the legal battle between the two entities, which has been ongoing for several years. The joint motion, filed by both parties, aimed to dissolve a $125 million penalty injunction that was imposed on Ripple. However, Judge Torres cited the need for further legal proceedings and clarification before any settlement could be reached.

The denial of the joint motion means that the lawsuit will continue, with no immediate end in sight. This decision has left many in the cryptocurrency community uncertain about the future of Ripple and its digital asset, XRP. The lawsuit, which began in 2020, centers around whether XRP should be classified as a security, a designation that would subject Ripple to stricter regulatory oversight. The outcome of the lawsuit could have far-reaching implications for the broader cryptocurrency industry, as it would set a precedent for how digital assets are regulated.

About a week ago, Ripple Labs and the SEC jointly requested that Judge Analisa Torres vacate a previous 2024 judgment and reduce the imposed fine from $125M to $50M. However, Judge Torres cited procedural errors for her dismissal, stating, “If jurisdiction were restored to this Court, the Court would deny the parties’ motion as procedurally improper.”

It’s worth pointing out that the Biden-era SEC appealed Judge Torres’ 2024 ruling on the sale of XRP on other exchanges being non-securities. In a rejoinder, Ripple filed a cross-appeal to address various issues raised by the regulator and challenge the $125 million penalty. Although the SEC withdrew its appeal in March, Ripple’s cross-appeal was still active, hence the need for an indicative ruling to advance the resolution. An indicative ruling refers to a court’s statement on its potential rule on a motion that falls within its purview.

Reacting to the update, Ripple’s legal chief Stuart Alderoty clarified, “Nothing in today’s order changes Ripple’s wins (i.e. XRP is not a security, etc). This is about procedural concerns with the dismissal of Ripple’s cross-appeal.” He added that they would revisit the issue with the court. For his part, Fred Rispoli, a pro-crypto attorney, viewed Judge Torres’ rejection as a ‘waste’ of her time, five years on the case. But he noted that a resolution may take a month to achieve. “I do think that will get it done, but that’s going to take at least 2-3 weeks for Ripple and SEC to put together and file. Another week or two for the judge to rule.”

The denial of the joint motion also raises questions about the potential impact on the broader cryptocurrency market. The lawsuit has already had a significant impact on the price of XRP, which has seen volatility in recent months. The denial of the joint motion could further exacerbate this volatility, as investors and traders react to the uncertainty surrounding the lawsuit. However, it is important to note that the denial of the joint motion does not necessarily mean that a settlement is impossible. Both parties could continue to negotiate and potentially reach an agreement in the future.

The denial of the joint motion also highlights the complexities of the legal landscape surrounding cryptocurrencies. The lawsuit between Ripple and the SEC is just one of many legal battles that have emerged in recent years, as regulators around the world grapple with how to classify and regulate digital assets. The outcome of the lawsuit could have significant implications for the broader cryptocurrency industry, as it would set a precedent for how digital assets are regulated. However, it is important to note that the legal landscape surrounding cryptocurrencies is still evolving, and it is possible that new regulations and legal precedents will emerge in the future.

In conclusion, the denial of the joint motion by Judge Torres means that the lawsuit between Ripple and the SEC will continue, with no immediate end in sight. The denial of the joint motion has left many in the cryptocurrency community uncertain about the future of Ripple and its digital asset, XRP. The lawsuit has already had a significant impact on the price of XRP, and the denial of the joint motion could further exacerbate this volatility. However, it is important to note that the denial of the joint motion does not necessarily mean that a settlement is impossible. Both parties could continue to negotiate and potentially reach an agreement in the future. The outcome of the lawsuit could have far-reaching implications for the broader cryptocurrency industry, as it would set a precedent for how digital assets are regulated.