U.S. District Judge Analisa Torres has rejected the joint motion filed by Ripple Labs and the Securities and Exchange Commission (SEC) seeking to vacate the existing injunction and reduce the penalty, extending the legal battle over XRP.
Court's Position and Case Overview
The U.S. District Court ruled against the joint motion from Ripple and the SEC, emphasizing that the proposed settlement terms cannot override the court's final ruling. The court reaffirmed its August 2024 judgment that imposed a $125 million civil penalty and barred Ripple from selling XRP to institutional investors in the U.S.
Ongoing Appeals Process
Judge Torres highlighted that the legal path forward lies in the existing appeal filed at the Second Circuit. She noted that both parties could withdraw their appeals if they wish to resolve the dispute amicably, but cannot compel the court to revise its binding judgment. A key point was that the parties' agreement conditioned the withdrawal of appeals on the dissolution of the injunction.
Consequences for XRP and Ripple
According to legal experts, the court's rejection may prolong the legal battle, with Ripple potentially needing to continue the court fight. The injunction remains in effect, and Ripple is not allowed to sell XRP to institutions in the U.S. without registration. While Ripple still holds the appeal option, the court has made it clear that it will not overturn its decision based on a settlement.
With Judge Torres's ruling, the situation surrounding Ripple and XRP remains uncertain, requiring the company to take further steps in the judicial system while sales restrictions on XRP in the U.S. continue to apply.
