In a notable turn in the long-running legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), Judge Analisa Torres of the Southern District of New York has denied both parties’ joint motion for an indicative ruling. This decision keeps the high-stakes case on its current trajectory and paves the way for potential appeals.
The request from Ripple and the SEC sought the court’s input on whether the July 2023 summary judgment could be reconsidered in light of a more recent ruling involving Coinbase, which added new context to how the Howey Test applies to digital asset sales. However, Judge Torres dismissed the motion, emphasizing that neither party sufficiently demonstrated how the Coinbase decision would meaningfully change the course of the case.
According to crypto-focused trial attorney Fred Rispoli, the rejection signals that a more detailed and properly structured motion is necessary if either side hopes to alter the case’s outcome. He noted that framing the request as a “settlement approval” motion didn't meet the rigorous standard required to vacate the existing injunction or reduce Ripple’s civil penalties. His blunt commentary on the matter underscored the court’s frustration with how drawn out the litigation has become.
XRP Market Reaction and What Lies Ahead
The ruling had a noticeable short-term impact on XRP’s price. After recently bouncing from the $2 support level, XRP was trading around $2.43 late on May 15. Despite a macro bullish breakout and strong institutional interest, the token faced a 5.1% dip within 24 hours of the ruling, suggesting a possible retest of the $2.35 support zone.
Still, the broader outlook remains optimistic. With a fully diluted market cap hovering around $242 billion and daily trading volumes near $4.8 billion, XRP remains one of the most actively traded altcoins. If bullish momentum continues, especially as legal clarity unfolds, XRP could be poised to revisit its all-time highs in the near future.
As the legal battle persists, eyes will remain on any forthcoming motions and whether either side can convincingly argue for a shift in the cases direction.