In a recent legal development, Judge Analisa Torres of the United States District Court for the Southern District of New York has denied the joint motion filed by the U.S. Securities and Exchange Commission (SEC) and Ripple Labs for an indicative ruling.
Despite this procedural setback, Ripple’s Chief Legal Officer, Stuart Alderoty, reassures the community that Ripple’s previous victories remain intact and that XRP is not a security. This article delves into the court’s decision, the implications for Ripple, and the broader impact on the cryptocurrency community.
Court Denies Joint Motion for Indicative Ruling
On May 15, 2025, Judge Torres issued an order denying the joint motion submitted by the SEC and Ripple Labs, which requested an indicative ruling under Federal Rule of Civil Procedure 62.1. The motion sought the court’s guidance on dissolving the injunction prohibiting Ripple’s unlawful offer and sale of securities and reducing the civil penalty imposed on Ripple from $125 million to $50 million.
Nothing in today’s order changes Ripple’s wins (i.e. XRP is not a security, etc). This is about procedural concerns with the dismissal of Ripple’s cross-appeal. Ripple and the SEC are fully in agreement to resolve this case and will revisit this issue with the Court, together. https://t.co/vBQdBD3FNe
— Stuart Alderoty (@s_alderoty) May 15, 2025
The court clarified that Rule 62.1 allows a district court to inform parties how it would rule on a motion if jurisdiction were restored after an appeal has been filed. In this case, however, Judge Torres deemed the motion procedurally improper, noting that jurisdiction remained with the appellate court. Consequently, the motion for an indicative ruling was denied.
Legal Context and Implications
The underlying legal battle began in 2020 when the SEC filed a lawsuit against Ripple Labs, alleging that the company had engaged in the unlawful offer and sale of securities, violating Section 5 of the Securities Act. While parts of the case were ruled in favor of both parties, Judge Torres’s landmark decision in July 2023 declared that XRP itself is not a security when sold on public exchanges. This ruling marked a significant victory for Ripple and set a precedent for digital asset classification.
However, the court did find Ripple in violation when XRP was sold directly to institutional investors. In August 2024, the court ordered Ripple to pay a civil penalty of $125,035,150. Ripple agreed to settle the dispute, committing to deposit $50 million into a fund for SEC distribution, thereby reducing the civil penalty by sixty percent.
Ripple’s Perspective: Legal Victory Remains Solid
Following the recent court order, Ripple CLO Stuart Alderoty took to social media to clarify the situation. He emphasized that the denial of the indicative ruling does not alter Ripple’s fundamental legal victories. According to Alderoty, the court’s decision addresses procedural issues rather than the substance of the case. Importantly, he reiterated that XRP remains classified as a non-security and that Ripple’s wins, including the clearance of XRP for public sale, are unaffected.
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— TimesTabloid (@TimesTabloid1) July 15, 2023
Alderoty expressed confidence in resolving the matter in collaboration with the SEC, stating that both parties are in agreement and will jointly address the procedural aspects before the court at a later date. This sentiment echoes Ripple’s strategic approach to finalizing the legal process while maintaining the positive outcomes already achieved.
Market Reactions and Community Sentiment
The denial of the joint motion sparked discussions within the XRP community, with some expressing concern over potential legal repercussions. However, the reassurance from Alderoty has alleviated fears, with many supporters highlighting that the core legal win—XRP not being deemed a security—remains unchallenged.
The broader crypto market appears relatively stable following the announcement, suggesting that investors are focusing more on the long-term regulatory clarity achieved through Ripple’s prior legal victories rather than on procedural disputes.
The recent court order denying the joint motion for an indicative ruling represents a procedural hurdle rather than a substantive change in Ripple’s legal standing. XRP remains classified as a non-security, and Ripple’s victories against the SEC’s allegations remain robust. As Ripple and the SEC work to address procedural matters collaboratively, the crypto community remains optimistic about the case’s ultimate resolution. Ripple’s steadfast stance and Alderoty’s assurance underscore the company’s commitment to maintaining its legal triumph and moving forward with confidence.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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