XRP News Today: Ripple-SEC XRP Dispute Continues Unresolved With Institutional Sales Ban

US District Judge Analisa Torres has denied a joint motion filed by Ripple Labs and the Securities and Exchange Commission (SEC), which sought an early resolution to their ongoing legal dispute over XRP sales and penalties. The ruling maintains the current restrictions on Ripple's institutional XRP sales and keeps the original penalty amount in place, leaving the future of the case uncertain.

The denial of the joint motion means that Ripple remains barred from selling XRP to institutional investors, a key aspect of the lawsuit. The penalty amount, which was determined in a 2023 summary judgment and is potentially nearing $200 million, also remains unchanged. This decision underscores the ongoing regulatory scrutiny Ripple faces and the challenges it must overcome to resume full market participation.

The next significant court update is expected by August 15, 2025, when the SEC must inform the court of its intended next steps. Ripple may respond or submit new motions before this deadline, but the denial of the joint motion suggests that both parties are still far from reaching a negotiated settlement. If no agreement is reached, the case is likely to proceed to the Second Circuit Court of Appeals, potentially extending the litigation well into late 2025 or beyond.

The foundational ruling from July 2023 continues to shape the case's dynamics. That judgment differentiated between Ripple’s programmatic XRP sales on exchanges, which were deemed not to constitute securities transactions, and sales made directly to institutional investors, which were classified as securities offerings. This distinction has shaped the regulatory framework applied to XRP and remains central to the ongoing dispute. The current injunction and penalties stem directly from this legal interpretation, emphasizing the nuanced regulatory challenges facing digital asset issuers.

Judge Torres’ refusal to grant an early resolution in the Ripple-SEC lawsuit maintains significant restrictions on XRP’s institutional sales and leaves the penalty unresolved. With the next court update scheduled for August 15, the case remains in a state of legal uncertainty, underscoring the complexities of cryptocurrency regulation in the United States. Market participants and observers should monitor forthcoming developments closely, as the outcome will have lasting implications for Ripple, XRP holders, and the broader digital asset ecosystem.