XRP Litigation Update: Lawyer Says Ripple and SEC Will Likely Drop Appeals, Settle for $50M, and Uphold Judge Torres' Ruling
Following an update on the XRP lawsuit today, $XRP attorney Fred Rispoli predicts that both Ripple and the SEC will eventually drop their appeals and settle the case with a reduced fine.
Judge Torres denied the joint motion in the XRP lawsuit.
Judge Annalisa Torres has denied a joint motion filed by both the US Securities and Exchange Commission (SEC) and Ripple Labs, which sought an indicative judgment for the $XRP lawsuit.
The request sought to dissolve a permanent injunction and reduce the previously imposed fine. The move creates a delay in the expected legal resolution of the XRP case.
Attorney James Phelan confirmed the decision via social media, saying that Judge Torres denied both parts of the joint motion.
The court's decision means both sides must now choose between pursuing their appeals or abandoning them altogether.
The legal process now goes back to the appeals stage, with no further changes made until new proceedings are filed.
Ripple's chief legal officer, Stuart Alderoty, acknowledged the decision, saying, "With this, the ball is back in our court."
He added that Ripple must now either pursue the appeal or dismiss it. Alderoty also noted that the ruling does not change XRP’s legal status as “not a security.”
The legal analyst predicted the settlement and appeal would be withdrawn.
Fred Rispoli, a legal expert who regularly comments on the case, believes both sides could drop their appeals.
He suggests that the final agreement could include a settlement of around $50 million, while upholding Judge Torres’ current ruling.
Rispoli added that Ripple will likely remain transparent in its operations and continue to comply with whatever the SEC can accept under the current regulatory environment.
“The SEC will publicly or privately communicate to Ripple that it is not restricted in its business operations,” he said, implying that the path forward has been unofficially outlined.
He also believes that the SEC is unlikely to take future enforcement action as long as Ripple complies with current standards.
The court's injunction is expected to remain in place, but is only enforceable if the SEC chooses to enforce it.
Rispoli explained that courts typically do not monitor compliance unless one of the parties indicates otherwise, meaning that further litigation is unlikely unless there is a violation.
Reference was made to regulatory direction and political climate.
According to Rispoli, part of the reasoning behind Judge Torres' decision may have been frustration with the duration and tone of the XRP lawsuit, which has dragged on for more than four years.
He noted that judges sometimes consider the broader political climate or institutional practices when making decisions.
While not directly accusing Judge Torres of political motivations, Rispoli noted that his harsh language in the ruling may indicate dissatisfaction with how the case was handled by both sides.
He also criticized the SEC's handling of the case during the previous administration, citing the Debit Box case as an example, where SEC lawyers were sanctioned.
He suggested that the SEC could have included declarations from commissioners who previously rejected enforcement actions, but chose not to do so.
Fred Rispoli then shared a timeline update, noting that a status report is due to the 2nd Circuit in August. He said the case will either continue until 2026 or be dismissed. "
The parties inform the Court of Appeals that they have disposed of the case and seek dismissal of the appeals," he wrote. As a result, the results of the $XRP case could be announced in late July or early August of this year, according to the lawyer.