Judge Analisa Torres has denied the joint request from both Ripple and the SEC to dismiss the lawsuit. This means that the case will not be resolved privately between the two parties.

Reasons for the Judge's Denial

Judge Torres wants to protect the fairness and transparency of the law. She stated that: "The parties do not have the right to unilaterally agree to avoid being bound by a final court judgment." Simply put, even if Ripple and the SEC want to quietly overturn the previous ruling, they cannot.

The court's ruling is a public decision, not a private agreement. This decision is based on thoroughly reviewed evidence and serves the public interest, especially in establishing regulations for the cryptocurrency market in the U.S.

Judge Torres only provided two options for Ripple and the SEC:

Withdraw the appeal and accept the current ruling.

Continue the legal appeal process.

What is the Initial Ruling?

In July 2023, Judge Torres made an important decision:

Ripple violated securities laws by selling directly to large investors (institutions) without registration. This is considered an "investment contract" because investors bought with the expectation that Ripple would increase the value of XRP.

However, she also declared that XRP traded on secondary exchanges (like regular cryptocurrency exchanges) is not considered a security. The reason is that buyers on these exchanges do not expect profits from Ripple's efforts, but from general market supply and demand. This does not meet the criteria of the "Howey Test" under U.S. securities law.

This decision is very important because it is one of the first rulings to clearly distinguish different forms of cryptocurrency transactions, creating an important precedent for the industry.

Why is This Ruling Important?

Ripple still has to be accountable and bound by court regulations for selling XRP directly to institutions.

This ruling continues to serve as an important legal standard to determine when a cryptocurrency is considered a security.

Judge Torres is protecting the law, preventing large companies from using private agreements to alter significant rulings, especially those with major implications and setting legal precedents for the future.

Would you like to learn more about other legal rulings related to cryptocurrency?