XRP News Today: Judge Torres Concludes Role in XRP Lawsuit, Resolution Hinges on Appeal Withdrawals

Judge Analisa Torres has concluded her role in the ongoing XRP lawsuit against the SEC, marking a pivotal moment in the legal battle. The resolution of the lawsuit now hinges on the withdrawal of appeals by both Ripple and the SEC. As of now, neither party has filed formal motions to dismiss their appeals, leaving the case in a state of limbo. Judge Torres previously ruled that Ripple violated securities laws, imposing a $125 million penalty. However, with no official settlements or dismissals filed, the legal process remains ongoing.

Judge Torres' conclusion of duties signifies a critical transition in the XRP case. The lawsuit's resolution now depends on both Ripple and the SEC withdrawing their appeals. As of now, no official settlements or dismissals have been filed. Judge Torres previously ruled Ripple violated securities laws, imposing a $125 million penalty. Despite CEO Brad Garlinghouse's intent to dismiss Ripple's appeal, no formal motions have been filed by either party. Marc Fagel, former SEC Regional Director, confirmed on Twitter that Judge Torres' role is concluded, and her order will take effect once both parties drop their appeals.

Immediate effects on the market remain subdued without formal settlement filings. XRP continues operations pending legal closure. No new financial commitments or institutional movements tied to the case have been reported so far. The broader implications include legal uncertainties for Ripple and potential impacts on governance tokens. Expert commentary from Marc Fagel stresses the importance of appeal withdrawals for court orders to take effect. Historical parallels with previous SEC cases exhibit prolonged litigations and settlements.

Market, regulatory, and community reactions hinge on the formal conclusion of this lawsuit. Legal analysts expect clarity on governance token regulations, influencing future SEC actions. Ripple’s case underscores the regulatory challenges that crypto firms may continue to face. Judge Torres has recently denied a joint request by Ripple Labs and the SEC for an indicative ruling, citing procedural missteps in the filing. This decision comes as a temporary setback in the long-awaited resolution between the two parties. Judge Torres made it clear that if jurisdiction were restored to her court, she would deny the parties’ motion as procedurally improper. This ruling follows a week after Ripple and the SEC jointly requested that Judge Torres vacate a prior 2024 judgment and reduce the originally imposed $125 million penalty to $50 million. The motion was intended to streamline the legal process and move toward a final settlement, but the court’s rejection underscores the importance of adhering to strict legal protocols.

The context of this ruling involves a key 2024 decision by Judge Torres, who ruled that XRP sales on secondary markets did not qualify as securities. The SEC, under the Biden administration, appealed this decision, challenging the court’s interpretation of securities law. Ripple, in response, filed a cross-appeal addressing other unresolved legal issues and questioning the $125 million fine. Although the SEC withdrew its appeal in March 2025, Ripple’s cross-appeal remained active. This lingering appeal necessitated an indicative ruling, which would provide court guidance on how a judge might rule if full jurisdiction were restored.

Ripple’s Chief Legal Officer, Stuart Alderoty, reassured stakeholders that the setback was minor and that nothing in the court’s order changes Ripple’s legal victories, such as the determination that XRP is not a security. Alderoty confirmed that Ripple intends to refile appropriately and revisit the matter in court. Despite the legal uncertainty, the XRP market has responded positively. Within a 12-hour window following the court’s ruling, roughly $50 million in XRP was withdrawn from exchanges and moved into self-custody. Over a 7-day period, over $270 million worth of XRP was taken off exchanges, indicating growing investor confidence and bullish sentiment. This contrasts with last year’s rally, which was marked by excessive retail speculation. The current moderate retail activity suggests that XRP still has room for growth without being overbought or overheated.

While XRP’s price saw a 6% pullback following the procedural update, the broader sentiment remains positive, especially among long-term holders and institutional participants. The latest procedural delay is unlikely to derail the broader trajectory toward resolution. With both parties seemingly aligned on reaching a settlement, and market sentiment remaining optimistic, investors are holding onto hope that a finalized deal is just a few weeks away.