Breaking: Ripple Lawsuit Takes Dramatic Turn—Institutional XRP Sales Face Potential Suspension

The SEC vs. Ripple saga just got juicier. A surprise ruling could freeze institutional XRP sales—sending shockwaves through crypto markets.

Here’s what went down:

The legal battle took an unexpected twist this week as Judge Torres hinted at suspending Ripple’s institutional sales. While retail transactions remain unaffected, whales might soon find their favorite liquidity tap turned off.

Market impact? Immediate. XRP price swung wildly as traders digested the news—because nothing says ‘stable asset’ like a 20% intraday swing on regulatory rumors.

The irony? This comes just as Wall Street was warming to crypto—showing once again that regulators move slower than a Bitcoin transaction during congestion.

Final thought: Whether this proves to be a temporary hiccup or a long-term stranglehold, one thing’s clear—when the SEC plays whack-a-mole, the crypto market loses billions in market cap before breakfast.

TLDR

• Judge Analisa Torres denied the joint motion filed by Ripple and the SEC.
• The court’s decision keeps the permanent injunction and monetary penalties against Ripple in place.
• Ripple may cease institutional XRP sales to comply with the court’s summary judgment ruling.
• Legal experts believe Ripple could resume such sales only through a registered securities offering.
• Ripple’s Chief Legal Officer stated the company must now choose between dropping or pursuing its appeal.

Ripple faces renewed scrutiny as Judge Analisa Torres denied a joint motion in the ongoing Ripple lawsuit. The denial leaves a permanent injunction and financial penalties tied to Ripple’s previous institutional XRP sales in place. As a result, legal experts believe Ripple may halt such sales or adopt alternative compliant structures.

The summary judgment last year declared Ripple’s institutional XRP sales as unregistered securities offerings. Since then, Ripple has reportedly restructured its institutional sales processes to comply with U.S. securities laws. However, this recent development has intensified speculation around Ripple’s future institutional dealings.

Ripple’s Chief Legal Officer confirmed that the court has now given the company two options. Ripple can either abandon its appeal on institutional sales or proceed with challenging the ruling. Both paths hold legal consequences, but neither affects XRP’s general classification as not being a security.

Ripple Must Rethink Institutional Sales Approach

Ripple may no longer continue institutional XRP sales unless it fully complies with securities regulations. The permanent injunction in the Ripple lawsuit directly impacts how the company can conduct future transactions with institutions. Ripple’s earlier attempts to adjust its practices may now face further legal evaluation.

Lawyer Bill Morgan stated that Ripple likely anticipated this outcome following the July 2023 summary judgment. He asserted that the firm had already altered its institutional sales model to reflect the court’s findings. This adjustment, presented during the penalty phase, may now become standard procedure.

One point I enjoyed reading from Fred’s 📖 was his observation on @s_alderoty referring to Ripple’s historic institutional sales.

Ripple had obviously prepared for the likelihood of a permanent injunction on institutional XRP sales after the summary judgment decision in July… https://t.co/mElprvC6gY

— bill morgan (@Belisarius2020) June 27, 2025

Lawyer Marc Fagel emphasized that Ripple must adhere to registration rules if it seeks to continue institutional sales. He clarified that future sales could occur through a properly registered securities offering. Therefore, Ripple’s next steps depend on how it plans to approach these legal requirements.

Legal Experts Signal Path Toward Resolution

Ripple and the SEC now must decide whether to proceed with appeals or settle the Ripple lawsuit entirely. According to legal analyst Fred Rispoli, both sides might choose to end the case without further litigation. This WOULD affirm Judge Torres’ decision while avoiding prolonged court proceedings.

Bill Morgan echoed similar thoughts, indicating that the uncertainty demands compliance with existing securities laws. He noted that Ripple would need to ensure institutional sales align strictly with the Securities Act, which reinforces the constraints imposed by the court’s injunction.

Ripple’s legal team now has the responsibility to decide on its future course. The Ripple lawsuit remains a significant regulatory milestone for the digital asset industry. Until a final resolution is reached, institutional XRP sales will likely remain on hold or under restricted conditions.