Ripple Scores Legal Win as Judge Torres Denies SEC’s Motion—Crypto Celebrates While Traders Eye XRP’s Next Move

Judge Analisa Torres just handed Ripple Labs a tactical victory—denying the SEC’s latest attempt to strong-arm the case. XRP surged 8% on the news, because nothing pumps a coin like regulators failing to land a knockout blow.

The ruling keeps Ripple’s momentum alive after last year’s landmark decision that secondary sales weren’t securities. SEC Chair Gary Gensler’s enforcement-by-lawsuit strategy? Looking shakier by the day.

Cynical take: Wall Street banks probably had a derivatives desk ready to profit either way. Meanwhile, crypto’s favorite courtroom drama rolls on—place your bets.

• Ripple gained a legal edge as Judge Analisa Torres denied the SEC’s motion, citing procedural impropriety and upholding due process.
• Legal analysts say the SEC must admit prior errors and collaborate with Ripple to propose a new, fair judgment, an unusually high bar.
• SEC Commissioner Caroline Crenshaw opposed a proposed $75M settlement, criticizing it as a threat to the agency’s enforcement authority.

Ripple Labs and the U.S. Securities and Exchange Commission (SEC), Judge Analisa Torres has denied the SEC’s motion for an indicative ruling, calling the request “procedurally improper.” The denial has triggered fresh legal commentary and opened the door to speculation about the next chapter in a case that could shape the future of crypto regulation in the United States.

The SEC had sought to reduce Ripple’s civil penalty to $50 million and dissolve a standing injunction that restricts the company’s institutional sales of XRP. However, Judge Torres rejected the motion, citing procedural flaws and affirming the importance of due process.

Now, legal experts say any effort to amend the existing judgment will require far more than a simple request.

Crypto advocate and attorney John Deaton, who has long followed the Ripple case, argued during a live broadcast that the SEC must undergo a significant strategic shift to persuade the court. According to Deaton, the commission would need to publicly acknowledge errors in its prior arguments, withdraw those claims, and work with Ripple to craft a joint solution. That cooperation, he said, could include referencing pending crypto-focused legislation in Congress.

Here are some of @JohnEDeaton1 ’s thoughts on Judge Torres denial of the motion for an indicative ruling in SEC vs. @ripple .
"I think the SEC is going to have to eat crow. I think they’re going to have to fall on their sword." pic.twitter.com/pf0mwTQg0D

Ripple Moves Closer to Regulatory Breakthrough Over XRP

Such a move WOULD represent a tectonic shift in the SEC’s stance, effectively conceding that digital assets like XRP may more closely resemble commodities than securities, thus falling outside the commission’s traditional jurisdiction.

To succeed, Deaton noted, the SEC must convince Judge Torres that Ripple’s XRP sales did not cause market harm and that the current injunction is stifling the company’s ability to operate, particularly its dealings with financial institutions. He emphasized that the judge will only entertain a new consent judgment if it is “fair and reasonable” and does not compromise the public interest.

Attorney Fred Rispoli echoed Deaton’s analysis, warning that replacing the current judgment will be a steep uphill battle. He suggested that both Ripple and the SEC would need to submit a 25-page joint motion outlining all prior cases they’ve dismissed, effectively laying the groundwork for a fresh agreement.

Rispoli also proposed that the SEC submit official declarations from its commissioners, acknowledging the agency’s failure to provide clear regulatory guidance on crypto markets. Such a rare admission could serve as the foundation for a negotiated path forward.

Still, Rispoli cautioned that this process will take time, estimating two to three weeks for the filings and an additional week or two for Judge Torres to issue a ruling.

Ripple Seeks $75M as SEC Divides

In the wake of the court’s decision, XRP is currently trading at $ 2.37 with a 24-hour trading volume of $ 7.06B and a market cap of $ 139.25B. The xrp price decreased -1.64% in the last 24 hours.

Meanwhile, the SEC is facing internal discord. On May 8, the agency and Ripple jointly proposed dissolving the August 2024 injunction and returning $75 million of the $125 million in escrowed penalties back to Ripple. But SEC Commissioner Caroline Crenshaw, a known skeptic of crypto, sharply criticized the proposed deal.

In a strongly worded dissent, Crenshaw claimed the settlement would erode the SEC’s enforcement authority and diminish the court’s role in upholding securities laws.

“This settlement, alongside the programmatic disassembly of the SEC’s crypto enforcement program, does a tremendous disservice to the investing public and undermines the court’s role,” she stated.

Her comments reflect growing ideological divisions within the SEC itself and underscore the broader regulatory uncertainty surrounding digital assets in the U.S.

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