Judge Analisa Torres recently ruled on the SEC and Ripple case, dismissing the possibility of a penalty reduction. This ruling does not change XRP's status on public exchanges.
Court Ruling on SEC and Ripple
Judge Analisa Torres has blocked the SEC-Ripple settlement, preventing Ripple from lowering the penalty from $125 million to $50 million. The ruling does not alter the previous finding that XRP is not considered a security for public exchanges. This news is significant for Ripple and its leadership, notably CEO Brad Garlinghouse and legal advisor Stuart Alderoty, who were actively involved in the legal proceedings.
XRP Market Status
XRP's status in the public market remains unchanged, sustaining investor confidence. The ruling delays financial resolution and halts $75 million in escrow. Ripple's legal team maintains optimism regarding future procedural success.
Regulatory Impact on Future Tokens
This event follows Ripple's partial legal victory in July 2023, highlighting regulatory challenges for tokens in the U.S. The ruling mirrors past SEC cases, particularly with LBRY Inc., establishing patterns for token classification. Future procedural filings are expected, which could impact regulatory governance for digital asset companies.
The judge's decision maintains Ripple's legal standing, delaying further institutional interest in XRP until clarity emerges. The unresolved penalty keeps Ripple under regulatory scrutiny.
