The long and winding legal saga between Ripple and the US Securities and Exchange Commission SEC has taken another dramatic turn! In a significant development for the crypto world, a federal judge has blocked a joint motion for settlement from both Ripple and the SEC. This pivotal decision has sent clear signals across the digital asset landscape, largely reconfirming the established legal status of XRP.
๐ฅ Settlement Denied: Judge Torres Stands Firm! ๐ฅ
US District Judge Analisa Torres, presiding over the high-profile case in the Southern District of New York, has rejected a joint request from Ripple and the SEC that aimed to reduce Ripple's penalty and dissolve a permanent injunction. The judge's ruling, issued on June 26 2025 emphasizes that the parties failed to demonstrate "exceptional circumstances" that would justify setting aside her earlier judgments. This means the court's prior rulings and the $125 million civil penalty against Ripple remain in place.
What does this mean? ๐ค It means that the attempt by both parties to fast-track a resolution and potentially alter previous court findings has been rebuffed. Judge Torres's decision underscores the finality of judicial rulings and the high bar for overturning them.
โ XRP's Legal Status: Unchanged and Reinforced! โ
Despite the denial of the settlement motion, the core legal clarity around XRP remains undisturbed. Recall that in July 2023 Judge Torres famously ruled that XRP itself is not a security when sold on public exchanges. However, she also found that Ripple's direct sales of XRP to institutional investors did constitute unregistered securities offerings.
Ripple's Chief Legal Officer Stuart Alderoty quickly clarified the situation stating that "XRP's legal status as not a security remains unchanged. In the meantime, it's business as usual." This latest development, while a procedural setback for a quick resolution, does not alter the fundamental finding that programmatic sales of XRP are not securities.
๐ The Path Forward: Appeals or Acceptance? ๐
With the settlement motion blocked, the ball is now back in the court of both Ripple and the SEC. They have two primary options:
* Continue Appeals: Both parties had previously filed appeals on different aspects of Judge Torres's 2023 ruling. They could choose to press forward with these appeals, prolonging the litigation.
* Withdraw Appeals and Accept Rulings: Ripple CEO Brad Garlinghouse has already announced that Ripple is dropping its cross-appeal, and the SEC is "expected to drop their appeal as they've previously said." This suggests a path towards finally "closing this chapter once and for all" by accepting the existing court judgments. If both appeals are withdrawn, the legal dispute would effectively conclude, with the $125 million penalty and the injunction on institutional sales standing.
๐ Community Reaction: Bullish Sentiment Prevails! ๐
Interestingly, the XRP community has largely reacted with bullish sentiment despite the procedural setback. This is likely due to the unwavering confirmation of XRP's non-security status for retail sales, a monumental victory that has been a cornerstone of Ripple's defense. The clarity provided by the court's earlier ruling continues to be a significant positive for $XRP s market standing.
This latest ruling serves as a powerful reminder of the complexities of crypto regulation but also highlights the judiciary's role in bringing much-needed clarity. For Ripple, it means moving forward with their business, leveraging the clarity gained on XRP's status, and focusing on their vision for an "Internet of Value." The crypto world watches keenly as this long-running saga inches closer to its definitive end. ๐๐