XRP Legal Battle Continues as Judge Torres Denies Settlement Preview

In a significant development for the cryptocurrency community, Judge Analisa Torres has denied a joint motion from Ripple Labs and the U.S. Securities and Exchange Commission (SEC) seeking early feedback on a proposed $50 million settlement. This decision prolongs the legal uncertainty surrounding XRP, a case that has been ongoing since 2020. The rejection of the indicative ruling—a procedural mechanism allowing courts to preview potential judgment modifications—means that the resolution of this landmark case remains delayed. The ongoing legal battle continues to cast a shadow over XRP's regulatory status, leaving investors and market participants in suspense. As of July 9, 2025, the cryptocurrency market watches closely for any further developments that could impact XRP's future trajectory.

Judge Torres Denies Ripple-SEC Settlement Preview, Prolonging XRP Legal Uncertainty

Judge Analisa Torres has rejected a joint motion from Ripple Labs and the U.S. Securities and Exchange Commission seeking early feedback on a proposed $50 million settlement. The decision delays resolution in the landmark case that has hung over XRP's regulatory status since 2020.

Both parties had requested an indicative ruling—a procedural mechanism allowing courts to preview potential judgment modifications during appeals. Torres dismissed the motion without prejudice, stating substantive penalty discussions must wait until after appellate review. The ruling preserves her 2023 determination that XRP itself isn't a security, while leaving open the question of institutional sales violations.

Market observers note the denial represents procedural rigor rather than substantive setback. 'This maintains the status quo,' said Eleanor Terrett, who first reported the filing. Settlement amounts ranging from $50M to $125M remain contested, with final resolution now deferred until after the SEC's appeal concludes.

Ripple Faces Legal Setback as Court Rejects Bid to Ease Penalties

Ripple Labs Inc. suffered another legal defeat after a federal judge denied its attempt to modify court-imposed penalties in its ongoing battle with the U.S. Securities and Exchange Commission. Judge Analisa Torres of the Southern District of New York rejected a joint motion from Ripple and the SEC that sought to revise a prior judgment, including lifting an injunction and reducing the $125 million penalty.

The court found no legal basis for the requested modifications, noting cited precedents didn't involve comparable securities violations. This ruling maintains the 2023 determination that Ripple violated federal law by selling XRP to institutional investors without proper registration.

The decision underscores the regulatory risks facing crypto projects as authorities continue enforcing securities laws. Ripple's XRP remains under scrutiny despite partial victories in earlier proceedings.

ECB Quietly Integrates XRP Ledger in European Bond Issuance Pilot

The European Central Bank has incorporated the XRP Ledger into its wholesale distributed ledger technology sandbox, marking a strategic step toward modernizing Europe's financial infrastructure. Lithuanian fintech Axiology emerged as the sole participant leveraging XRP technology among 48 trials documented in the ECB's June 2025 report.

Axiology's private trading and settlement platform, built on the open-source XRP Ledger but operating independently from Ripple, demonstrated full lifecycle management of bond issuance—from initial offering to investor payouts and maturity settlements. The system's design ensures asset security, payment efficiency, and regulatory compliance for digital bond markets.

The ECB validated the technology through a live test case where auction results triggered automated escrow wallet creation and XRP-powered transactions between issuer and investor accounts. This development positions XRP as a potential backbone for Europe's future digital bond ecosystem.

Pro-Ripple Lawyer Defends XRP's Decentralization Amid Regulatory Scrutiny

Attorney John Deaton has challenged assertions that Ripple's substantial XRP holdings undermine the network's decentralization. The pro-XRP legal advocate argues that true decentralization lies in operational mechanics, not token distribution. Over 75,000 XRP holders across 140 countries have endorsed Deaton's position through amicus briefs in the ongoing SEC case.

The XRP Ledger's consensus model requires independent validator approval for all transactions and protocol changes—a structure Deaton emphasizes as fundamentally decentralized. Ripple cannot unilaterally alter the network despite holding 40% of XRP supply. This technical governance framework contrasts with political sound bites that often conflate token concentration with centralization.

Market participants continue debating decentralization standards as regulators intensify scrutiny of crypto networks. The XRP community's global participation and validator independence present a compelling case for decentralized operation, regardless of Ripple's treasury position.

Judge Torres Denies Ripple and SEC's Joint Motion to Vacate Injunction

U.S. District Judge Analisa Torres has rejected a joint motion from Ripple and the SEC seeking to vacate a permanent injunction and reduce penalties in their long-running legal battle. The decision maintains the court's original $50 million penalty and restrictions on Ripple's institutional sales of XRP.

Pro-crypto journalist Eleanor Terrett highlighted the ruling, which comes after both parties refiled their motion earlier this month. Judge Torres found their arguments unpersuasive, noting the settlement agreement doesn't override the court's final judgment. "Dissolution of the injunction is only necessary because the parties made it so," Torres remarked in her decision.

The ruling underscores the SEC's continued scrutiny of cryptocurrency projects under federal securities law. While Ripple secured a partial victory last year when Torres ruled XRP isn't inherently a security, the institutional sales aspect remains contentious. Market observers view this as another chapter in the SEC's broader enforcement campaign against crypto firms.

XRP Exchange Outflow Reports Debunked as Data Glitch

Initial reports of massive XRP outflows from major exchanges, including Binance and Upbit, have been attributed to a data glitch. CryptoQuant's analytics platform initially indicated over $12 billion in withdrawals, sparking speculation of a supply shock. Further investigation revealed no such activity on-chain.

The corrected data shows no abnormal movements from the tagged wallets. Market participants had questioned the validity of the outflows, given the lack of supporting blockchain evidence. This incident underscores the importance of verifying on-chain data before drawing conclusions about market dynamics.