XRP News Today: Judge Rejects Ripple SEC Joint Motion Over XRP

Judge Analisa Torres has rejected a joint motion filed by Ripple and the Securities and Exchange Commission (SEC) in their ongoing legal dispute over the cryptocurrency XRP. The motion, submitted by both parties, sought an indicative ruling to determine if the court would grant relief from judgment and vacate the permanent injunction imposed on Ripple. However, Judge Torres determined that the motion did not meet the necessary legal standards for such a ruling.

This development is significant in a case that has been ongoing since 2020. The SEC has argued that Ripple's failure to register its XRP offerings as securities has deprived investors of essential information about the cryptocurrency. The SEC's stance is that XRP should be classified as a security, subject to federal securities laws, while Ripple contends that XRP is a currency and not a security.

Judge Torres' ruling highlights the complexity of the legal issues involved and the high stakes at play. The denial of the joint motion means that Ripple will remain subject to the permanent injunction and the $125 million penalty imposed by the court. This ruling also emphasizes the SEC's authority to enforce federal securities laws, even in the rapidly evolving world of cryptocurrencies.

Judge Torres made it clear that private agreements cannot override a public judgment issued by a federal court. Her statement was direct: “The parties do not have the authority to agree not to be bound by a court’s final judgment.” This ruling underlines that judgments serve the interests of the litigants and the broader public interest.

Judge Torres' message also offered a clear choice to Ripple and the SEC. If either party disagrees with the court’s decision, the path forward is through the appeals process, not through privately negotiated revisions. The SEC initially asked the Second Circuit to extend the stay on the appeals to August 15 to give Judge Torres time to make her decision. Her decision may force both parties into litigation. Alternatively, they can withdraw their appeals and accept the judgment as it stands. The judge made it clear that neither side had presented circumstances that would justify altering the judgment outside of the proper legal channels.

While most market participants assumed the judge rejected the initial filing solely because of a procedural error, the recent ruling denies the notion that the court’s previous findings are subject to negotiation. Prominent attorneys believed Judge Torres would grant the motion. But the attempt to revise those terms without fully concluding the appellate process failed to satisfy the standards required for such relief. The language of the ruling leaves little room for ambiguity. According to Terrett’s post, Torres stated that the parties “have not come close” to demonstrating the type of extraordinary circumstances needed to set aside the judgment. Now, Ripple and the SEC must decide whether to pursue their appeals in full or accept the current judgment without further challenge.

The SEC has the power to formally drop their appeal and simply not respond to Ripple's appellate brief, which would leave it unopposed and potentially give Ripple a significant advantage. However, the SEC's decision on this matter remains unclear. The ongoing legal battle between Ripple and the SEC is likely to continue, with both parties seeking to assert their positions in the court of law.

The denial of the joint motion by Judge Torres serves as a reminder of the importance of compliance with federal securities laws, even in the context of emerging technologies like cryptocurrencies. The ruling also underscores the need for clear regulatory frameworks to govern the use and trading of digital assets, ensuring that investors are protected and that the market operates fairly and transparently.