- Ripple and SEC denied joint motion by Judge Torres.
- XRP maintains legal status as not a security.
- $125 million penalty remains against Ripple.
Judge Analisa Torres denied the joint motion from Ripple Labs and the SEC concerning the XRP lawsuit on Monday in a U.S. court.
The ruling is crucial as it maintains XRP’s status as ‘not a security’ while the original penalty remains, prompting Ripple to weigh further legal actions.
The Decision and Its Implications
Judge Torres declined the joint motion from Ripple and the SEC, dismissing their attempt to reduce penalties and lift an injunction. Ripple must now decide whether to continue their appeal or abandon it. Stuart Alderoty, Ripple’s Chief Legal Officer, noted the decision leaves the legal status of XRP unchanged. Financial experts observe that this keeps Ripple under considerable financial pressure due to the unchanged penalty. The court’s decision holds significant legal implications, affirming Judge Torres’ earlier judgments, indicating no shift in the regulatory approach towards XRP.
Market Reactions and Future Implications
Markets reacted with XRP experiencing volatility, though no other cryptocurrencies were notably affected. This could influence investor sentiment and market strategies in the broader digital asset landscape. Future settlement discussions may possibly alter this dynamic. Legal analysts suggest this ruling emphasizes the court’s stance on institutional sales without influencing public offerings. This decision serves as a legal precedent, underscoring the need for industry compliance with existing regulations. Stakeholders are now observing potential shifts in advocacy, regulation, and Ethereum’s broader ecosystem integration.
With this, the ball is back in our court. The ruling does not change XRP’s legal status as ‘not a security’ – Stuart Alderoty, Chief Legal Officer, Ripple
