Judge Analisa Torres of the U.S. District Court for the Southern District of New York has denied a key joint motion filed by Ripple Labs and the Securities and Exchange Commission (SEC). The motion sought an indicative ruling to dissolve a previous permanent injunction against Ripple and to reduce the $125 million monetary penalty that Ripple was ordered to pay for violating Section 5 of the Securities Act by selling XRP to institutional investors without proper registration.
This denial means the existing permanent injunction and penalties remain in effect. The court's original 2023 judgment found Ripple liable for these violations, but programmatic sales of XRP were ruled not to be securities. Importantly, legal experts and attorney Bill Morgan have confirmed that this recent ruling will not alter XRP’s classification as a digital asset, nor will it impact the broader regulatory framework for cryptocurrencies. The upcoming final judgment will focus on procedural aspects regarding penalties and the injunction rather than redefining XRP’s status.
Ripple and the SEC have made it clear that neither party is seeking to challenge foundational legal interpretations established by earlier rulings. The final decision date remains open-ended, with no set timeline for when the court will issue its ruling on the pending motion.
This case remains pivotal for Ripple but does not significantly shift the legal landscape for XRP or crypto asset classifications more broadly.