After the XRP lawsuit update today, XRP lawyer Fred Rispoli predicts that both Ripple and the SEC will ultimately drop their appeals and settle the case with a reduced penalty.
Judge Torres Rejects Joint Motion in XRP Lawsuit
Judge Analisa Torres has denied a joint motion filed by both the U.S. Securities and Exchange Commission (SEC) and Ripple Labs, which sought an indicative ruling for the XRP lawsuit. The request included dissolving a permanent injunction and reducing a previously agreed-upon penalty. This move creates a pause in the expected legal resolution of the XRP case.
Attorney James Filan confirmed the ruling via social media, stating that Judge Torres refused both parts of the joint motion. The court’s decision means both parties must now choose between moving forward with their appeals or dropping them entirely. The legal process now moves back to the appellate stage, with no further changes unless a new action is taken.
Stuart Alderoty, Ripple’s Chief Legal Officer, acknowledged the decision, saying, “With this, the ball is back in our court.” He added that Ripple must now either continue the appeal or dismiss it. Alderoty also noted that the ruling does not change XRP’s legal status as “not a security.”
Legal Analyst Predicts Settlement and Appeal Withdrawal
Fred Rispoli, a legal expert who regularly comments on the case, believes both parties are likely to drop their appeals. He suggests the final agreement may include a settlement close to $50 million, maintaining the current judgment by Judge Torres. Rispoli added that Ripple will likely remain transparent in its operations and continue to align with what the SEC can accept under current regulatory conditions.
He stated, “The SEC will publicly or privately communicate to Ripple that it is not restricted in its business operations,” implying that a path forward has been unofficially outlined. He also believes the SEC is unlikely to take future enforcement action as long as Ripple complies with current standards.
The court’s injunction is expected to remain in place, but it is only enforceable if the SEC chooses to act on it. Rispoli explained that courts do not typically monitor compliance unless prompted by one of the parties, making further litigation unlikely unless a violation occurs.
Regulatory Direction and Political Climate Cited
According to Rispoli, part of the reasoning behind Judge Torres’s ruling may be frustration with the duration and tone of the XRP lawsuit, which has lasted over four years. He noted that judges sometimes consider the broader political climate or institutional conduct when making decisions.
While not accusing Judge Torres directly of political motivation, Rispoli mentioned that her firm language in the decision could point to dissatisfaction with how the case was handled by both parties.
He also criticized the SEC’s handling of the case during the previous administration, referring to examples such as the Debt Box case, where SEC attorneys were sanctioned. He suggested that the SEC could have included declarations from commissioners disavowing earlier enforcement actions, but chose not to do so.
Subsequently, Fred Rispoli shared a timeline update, noting that a status report is due to the 2nd Circuit in August. He said the case will either continue into 2026 or be settled and closed. “Parties tell the appellate court they settled the case and seek dismissal of the appeals,” he wrote. Consequently, as per the lawyer the XRP lawsuit outcome may be announced by late July or early August this year.
