On Thursday, Ripple Labs and the US Securities and Exchange Commission (SEC) encountered a significant hurdle in their ongoing legal battle, as Judge Analisa Torres denied their joint request for an indicative ruling.
This ruling comes despite both parties expressing a desire to resolve the case amicably, suggesting that the legal dispute will continue for the time being.
Ripple Remains Under Scrutiny
Market expert Pumpius highlighted the implications of this ruling in a detailed social media post, emphasizing the message sent by Judge Torres.
The joint motion sought to dissolve a permanent injunction against Ripple and reduce the company’s $125 million penalty by 60%. However, Judge Torres firmly rejected both requests, signaling that there would be no shortcuts or behind-the-scenes arrangements in this case.
Pumpius questioned the sudden alignment of interests between Ripple and the Securities and Exchange Commission, prompting speculation about the motivations behind their cooperation.
The expert decoded the situation, noting that Ripple had previously admitted fault through a settlement, and the SEC was eager to maintain the terms of that deal.
Both parties aimed to eliminate the injunction and penalty to allow Ripple a cleaner exit from the legal entanglement. However, Judge Torres’s denial of this request ensures that Ripple remains under scrutiny, with the $125 million fine and injunction still in effect.
Court Denial As Tactical Delay?
This ruling does not undermine Ripple’s earlier victory in 2023, where XRP was declared not a security in secondary sales. Yet, the denial keeps the existing penalties in place, raising concerns among Ripple’s supporters and potentially impacting XRP’s market performance.
The ruling is perceived as a power play, suggesting that the blockchain payment company seeks to finalize its operations before a pivotal shift in the cryptocurrency landscape.
Speculation arises regarding the SEC’s motivations for aligning with Ripple in their request to end the case. The expert theorizes that both parties are strategizing for a significant liquidity migration in the crypto market, with the SEC possibly signaling which platforms will dominate in the future.
While this setback may seem discouraging, it is viewed by Pumpius as a tactical move. The delay in resolving the legal issues surrounding the crypto firm could suppress XRP’s price temporarily, potentially spooking retail investors while allowing institutional players to accumulate more assets quietly.
In essence, Judge Torres’s ruling emphasizes transparency in the legal process, insisting that any future motions must occur in full view of the court and the public.
Ripple retains its critical victory regarding XRP’s status as a non-security for retail use, but the ongoing penalties and the appeals process will likely unfold at a slower, more visible pace.
When writing, XRP trades at $2.14, down over 4% in the 24-hour time frame following Judge Torres’ ruling.
Featured image from DALL-E, chart from TradingView.com
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