Judge Torres Torpedoes SEC-Ripple Settlement—Crypto Regulation Thrown Into Chaos
In a ruling that sent shockwaves through the crypto industry, Judge Analisa Torres just gutted the SEC’s proposed settlement with Ripple Labs. The decision leaves XRP in regulatory limbo—and Wall Street lawyers scrambling to bill those panic-hour client calls.
Regulators left clutching air: The SEC’s carefully crafted enforcement strategy now looks like a house of cards. Torres’ rejection exposes the agency’s shaky legal footing in crypto—while giving fresh ammo to every blockchain project fighting enforcement overreach.
Market fallout immediate: XRP prices whipsawed 18% in minutes as traders parsed the implications. The real casualty? Any remaining illusion that Washington has a coherent crypto framework. Buckle up—this legal vacuum could last years.
Meanwhile, Ripple has been expanding its operations across different regions, particularly the Middle East.
The company announced on Monday that Zand Bank and fintech firm Mamo will integrate Ripple Payments, its blockchain-powered cross-border payments platform.
Earlier this month, pharmaceutical distribution company Wellgistics announced plans to integrate XRP into its payment and treasury operations, making it one of the first publicly traded firms to do so.
The Florida-based company said it aims to leverage XRP’s blockchain infrastructure to improve transaction speeds and lower settlement costs for pharmacies, suppliers, and manufacturers.
The court’s pushback comes as the SEC, under the current administration of President Donald Trump, signals a MOVE toward a more crypto-friendly regulatory framework for digital assets.
Trump, who emphasized a pro-crypto stance during his campaign, appointed former SEC Commissioner Paul Atkins to lead the agency.
Atkins is expected to take a markedly more accommodating approach to blockchain sector regulation compared to his predecessor, Gary Gensler, who was known for his aggressive enforcement-driven regulatory strategy.
The agency has already dropped its lawsuits against Coinbase and Cumberland DRW earlier this year, and a separate investigation into Uniswap Labs closed in February without enforcement action.
The agency also closed its investigation into CyberKongz, a prominent Ethereum-based NFT and gaming project, with no enforcement action taken, the team announced on Tuesday.
More recently, the SEC announced it would not pursue further legal action against Richard Schueler, better known as Richard Heart, the founder of Hex, PulseChain, and PulseX.
