In the ongoing legal battle between the SEC and Ripple Labs, Judge Analisa Torres has denied the SEC's request to revise a prior ruling, adding a new turn to the high-profile case.
Judge Analisa Torres' Ruling
The SEC had requested the court to ‘(1) dissolve’ the permanent injunction ordering Ripple to comply with the law, and ‘(2) cut the monetary penalty imposed against Ripple by more than half.’ However, Judge Torres denied the motion, stating plainly: 'The request is DENIED.'
Details of the SEC Case Against Ripple
The case began in December 2020 when the SEC sued Ripple, accusing the company of unlawfully offering and selling XRP as an unregistered security, thereby violating Section 5 of the Securities Act of 1933. The SEC argued that Ripple’s failure to register XRP offerings meant that investors were deprived of information necessary to make informed investment decisions.
Consequences of the Ruling for Ripple and SEC
With this week’s ruling, Judge Torres has decisively pushed back. She noted: 'For the foregoing reasons, the parties’ motion for an indicative ruling is DENIED.' This decision represents a legal setback for the SEC, though the broader case remains ongoing, with key issues still unresolved regarding remedies and future regulatory oversight of digital assets.
Thus, Ripple has secured another procedural victory in its multi-year battle with the U.S. Securities and Exchange Commission, although comprehensive issues still require resolution.
