Ripple-SEC Settlement Dismissed By Judge Torres

Judge Analisa Torres recently denied a joint request by Ripple and the SEC for an indicative ruling due to procedural missteps in the filing.

In her response, Judge Torres made it clear for both parties:

“If jurisdiction were restored to this Court, the Court would deny the parties’ motion as procedurally improper.”

 

Ripple and SEC’s Motion Denied Over Technicalities

The ruling comes just a week after Ripple and the SEC jointly requested that Judge Torres vacate a prior 2024 judgment and reduce the originally imposed $125 million penalty to $50 million.

Source: X (@s_alderoty)

The motion was part of efforts to streamline the legal process and move toward a final settlement. However, the court’s rejection signals that even as both parties edge closer to resolution, strict legal protocols must still be followed.

Appeals, Cross-Appeals, & The Push For Resolution

To understand the context, it’s important to revisit a key 2024 decision: Judge Torres ruled that XRP sales on secondary markets did not qualify as securities. The SEC under the Biden administration appealed that decision, challenging the court’s interpretation of securities law.

Ripple, in turn, filed a cross-appeal, addressing other unresolved legal issues and questioning the hefty $125 million fine levied against it. Although the SEC eventually withdrew its appeal in March 2025, Ripple’s cross-appeal remained active.

This lingering appeal made an indicative ruling necessary, a type of court guidance that helps clarify how a judge might rule if full jurisdiction were restored.

Ripple’s Legal Team Remains Optimistic

In response to the procedural hiccup, Ripple’s Chief Legal Officer, Stuart Alderoty, reassured stakeholders that the setback was minor:

“Nothing in today’s order changes Ripple’s wins (i.e., XRP is not a security, etc). This is about procedural concerns with the dismissal of Ripple’s cross-appeal.”

Alderoty confirmed that Ripple intends to refile appropriately and revisit the matter in court.

Crypto-friendly attorney Fred Rispoli also weighed in on the update. He described Judge Torres’ dismissal as somewhat frustrating, especially given the case’s five-year history. However, Rispoli remained hopeful:

“I do think that will get it done, but that’s going to take at least 2-3 weeks for Ripple and SEC to put together and file. Another week or two for the judge to rule.”

That timeline places a potential settlement decision within the next month, assuming no further complications arise.

XRP Price & Market Sentiment Hold Strong

Interestingly, the XRP market has responded positively despite the legal uncertainty.

According to CoinGlass exchange netflow data, roughly $50 million in XRP was withdrawn from exchanges and moved into self-custody within a 12-hour window following the court’s ruling.

Zooming out to a 7-day view, over $270 million worth of XRP was taken off exchanges, indicating growing investor confidence and bullish sentiment in the face of legal turbulence.

Exchange & Retail Metrics Suggest Bullish Outlook

Meanwhile, CryptoQuant data showed that XRP’s futures market remains relatively neutral in terms of retail activity. This contrasts sharply with last year’s rally, which was marked by excessive retail speculation, often a sign of a market top.

Source: CryptoQuant

The current moderate retail activity could be interpreted as a healthy sign, suggesting that XRP still has room for growth without being overbought or overheated.

Short-Term Price Dip Unlikely To Derail Momentum

Despite the optimistic market indicators, XRP’s price saw a 6% pullback, dropping from $2.60 to $2.40 following the procedural update.

While this may have triggered some concern among short-term traders, the broader sentiment remains positive, especially among long-term holders and institutional participants.

While the Ripple-SEC legal drama continues to unfold, the latest procedural delay is unlikely to derail the broader trajectory toward resolution. With both parties seemingly aligned on reaching a settlement, and market sentiment remaining optimistic, investors are holding onto hope that a finalized deal is just a few weeks away.