Judge Torres Rejects Ripple and SEC’s Request in XRP Lawsuit
Judge Analisa Torres has delivered a blow to both Ripple and the U.S. Securities and Exchange Commission (SEC) by rejecting their joint motion for an indicative ruling in the ongoing XRP case. This decision blocks their attempt to dissolve the permanent injunction against Ripple and to reduce the imposed monetary penalties.
The motion, which followed a previously denied request on procedural grounds, failed again as Judge Torres ruled that neither party demonstrated the “exceptional circumstances” required to justify modifying a final court judgment. She emphasized the legal principle that such judgments should only be altered in rare and extraordinary cases, highlighting that they serve the broader legal community—not just the disputing parties.
Despite Ripple and the SEC reaching a settlement, Judge Torres found no compelling reason to alter the court’s earlier decision. Citing a Supreme Court precedent, she reaffirmed that final judgments should remain unless changing them clearly benefits the public interest.
The judge also criticized the SEC’s reversal in position. Earlier in the lawsuit, the SEC had insisted that both the financial penalty and the injunction were crucial to protect investors and prevent future violations by Ripple. Judge Torres pointed out that those original arguments carried weight and that the new, more lenient stance lacked credibility.
Ripple, for its part, submitted a letter claiming that it would still comply with securities laws even without the injunction. But the judge concluded that the circumstances remain unchanged, and neither party convincingly argued otherwise.
