U.S. District Judge Analisa Torres has once again rejected a joint request from Ripple Labs and the U.S. Securities and Exchange Commission (SEC), reaffirming her earlier May ruling. The rejected motion aims to pause their ongoing appeals and proceed with a proposed settlement.
Judge Torres Says No to Ripple and SEC
In a June 26 court order, Judge Torres rejected the motion as “procedurally improper” and lacking the required “exceptional circumstances” to modify a final judgment while appeals remain pending.
The motion, filed on June 12 sought to dissolve the April 2024 injunction that restricted Ripple’s institutional XRP sales and reduce the original $125 million penalty to $50 million. The remaining $75 million is proposed to be returned to Ripple under a settlement framework.
Despite citing the in-principle agreement, changes in SEC enforcement policy, and the desire to avoid protracted litigation, Judge Torres determined that these factors did not meet the “extraordinary circumstances” threshold of Rule 60(b) nor sufficiently demonstrate public interest considerations.
Meanwhile, Ripple and the SEC have petitioned the Second Circuit Court of Appeals to continue holding their cross-appeals in abeyance until August 15, 2025. The purpose is to allow time for Judge Torres to reconsider their revised filing. If no compliant motion is pending by that deadline, the appeals court may lift the stay and resume complete appellate proceedings.
The next move is dependent on whether Ripple and the SEC can deliver a stronger motion that satisfies Rule 60(b)’s standards, and whether the Second Circuit maintains the appeal pause through mid-August.
Market and Industry Reactions
Market response was swift as investors reacted to the prolonged uncertainty. Following the ruling, XRP dropped by more than 4%, erasing approximately $2 billion in market capitalization. Despite this volatility, Ripple Labs’ Chief Legal Officer, Stuart Alderoty, maintains that the core outcome remains intact. Commenting on the development, he said:
“With this, the ball is back in our court. The Court gave us two options: dismiss our appeal challenging the finding on historic institutional sales—or press forward with the appeal. Stay tuned. Either way, XRP’s legal status as not a security remains unchanged. In the meantime, it’s business as usual.”
Meanwhile, Ripple has partnered with Wormhole to introduce seamless multichain interoperability to the XRP Ledger (XRPL) and its EVM sidechain. It believes the move will facilitate frictionless transfers and messaging across more than 35 blockchains.
