Judge Analisa Torres Denies a Joint Motion from Ripple and the SEC

On May 15, Judge Analisa Torres denied a joint motion from Ripple and the U.S. Securities and Exchange Commission (SEC) that sought approval for a proposed settlement structure.

Judge Analisa Torres has denied a joint motion from Ripple and the U.S. Securities and Exchange Commission (SEC) that sought approval for a proposed settlement structure in the long-running XRP lawsuit. The motion, which was described as a request for an “indicative ruling,” was dismissed as “procedurally improper.”

While the judge noted that she had no jurisdiction over the matter, she added that even if she did, she would not grant the request. This development further extends the case, which has already spanned several months.

Legal expert Fred Rispoli explained that the court viewed the motion as an attempt to bypass the rigorous legal standard needed to remove the previously ordered injunction and reduce the financial penalty. Rispoli stated,

“The parties fail to address the ‘heavy burden' they must overcome to vacate the injunction and substantially reduce the Civil Penalty.”

This suggests that the only path forward is to file a detailed motion, possibly around 25 pages, providing clear justification. He noted that this would take the SEC and Ripple several weeks to prepare. Judge Torres may take additional time to rule.

Rispoli estimated the earliest conclusion in the XRP lawsuit could arrive by July.

This has once again sparked discussions in the XRP community. Following the court’s decision, several legal commentators shared their views on the outcome of the XRP lawsuit. Former SEC attorney Marc Fagel pushed back on the idea that Judge Torres was acting out of bias or political intent.

He emphasized that Ripple was found to have violated securities laws and that the injunction and $125 million penalty were established legal remedies.

Fagel addressed claims that the injunction was an unnecessary addition. “The court heard the evidence and agreed that Ripple should be enjoined. So the parties are basically going to her and telling her she was wrong,” he wrote in response to critics.

Jungle Inc, a known voice in the XRP community, claimed the injunction was a last-minute addition at the SEC’s request. Fagel countered this by stating that the court, not just the SEC, decided on the remedies after finding Ripple liable.

What’s Next for the Ripple VS SEC Case?

According to James Farrell, another ex-SEC lawyer, Ripple attempted to frame its request as part of a settlement to avoid the higher legal burden needed to remove the injunction. Farrell noted,

“Ripple played a high risk/high reward strategy.”

He added that Judge Torres was not convinced by the framing of the request, leading to its rejection.

Farrell also pointed to internal complications within the SEC, that could have been a key reason behind the delay in the XRP lawsuit resolution.

He suggested that there may be different interpretations of the settlement terms. The SEC’s Office of the General Counsel may argue that its role in the agreement is already complete.

Meanwhile, any changes to the proposed terms might need another vote from SEC commissioners.

Legal sources told journalist Eleanor Terrett that Judge Torres is making it clear that Ripple and the SEC must provide strong reasoning if they want the court to reverse prior decisions. Terrett said,

“She’s not making it easy for the parties to simply walk away.”

XRP Lawsuit Projected Resolution Timeline

If both parties now follow the proper legal process in the Ripple SEC case, including filing comprehensive documentation and providing compelling evidence, a resolution could come as early as July.

However, some observers believe the XRP lawsuit could extend into December. This could happen if the filings are delayed or if Judge Torres takes more time to review.

Rispoli suggested the new motion should include statements from SEC Commissioners, a review of other dropped cases, and evidence of the agency’s lack of progress on crypto regulation.

He also noted that preparing such a motion would require two to three weeks. An additional week or two may be needed for the judge’s decision.

Notably, the latest setback in the case has also weighed on the investors’ sentiment. The same is evidenced by the retreat in the XRP price. During writing, XRP price exchanged hands at $2.36, falling from the $2.5 mark after Judge Torres’s latest ruling.