🧾 SUMMARY: RIPPLE VS. SEC – JUDGE TORRES' RULING

Judge Analisa Torres has rejected the joint motion from Ripple and the SEC to end the lawsuit.

⚖️ WHY DID THE JUDGE REFUSE?

Judge Torres is taking a firm stance to uphold the integrity of the legal system and the public interest. She emphasizes:

“The parties do not have the right to privately agree to be unbound by a final court ruling.”

In other words, even if both parties silently agree to reverse the ruling, they cannot, because:

The court's ruling is a public action, not a private contract between the two parties.

Her decision is based on a full evidentiary hearing and serves the public interest, particularly regarding the regulation of crypto in the U.S.

She emphasizes that Ripple and the SEC have only 2 paths:

1- Withdraw the appeal and accept the current ruling, or

2- Follow the proper appeals process.

🔙 WHAT WAS THE INITIAL RULING?

In July 2023, Judge Torres made a landmark decision:

Ripple violated securities laws when selling XRP directly, through to institutional investors without registration --> This is an investment contract.

Ripple still faces penalties and is bound by court regulations. This means that selling XRP directly to institutions is considered an investment contract, as the buyers give money directly to Ripple with the expectation that Ripple will increase the value of the XRP token, unlike purchasing on an exchange, where the seller can be anyone.