In a detailed and thought-provoking analysis, prominent trial attorney Fred Rispoli has weighed in on Judge Analisa Torres’s latest ruling in the long-running legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). His commentary highlights not only the complexities of the case but also the broader implications for crypto regulation under the current political climate.
Torres’s Ruling: A Puzzling Denial
Judge Torres recently denied a joint motion by Ripple and the SEC that sought to reduce Ripple’s penalty from $125 million to $50 million and lift the injunction restricting its future institutional XRP sales.
According to Rispoli, the court had a clear path to grant the motion. Given the SEC’s ongoing leadership transition and shifting stance toward crypto under the Trump administration, many expected a more flexible judicial response.
Instead, Torres rejected the motion outright. Rispoli suggests two possible reasons: either the judge was frustrated after spending more than four years on intense litigation between the parties, or she may harbor political bias against the new administration. While he stops short of confirming the latter, he points out that politically motivated decisions are not unheard of in the federal judiciary and vows to follow Judge Torres’s future rulings more closely.
SEC v. Ripple Update: This is a long post on my thoughts here but the TLDR is: "Welcome to the new SEC, for now more or less the same as the last one." And: Ripple and SEC will settle the appeal for the reduced, agreed upon amount and leave the Torres judgment in place, while the… https://t.co/9y9o4M4uBW
— Fred Rispoli (@freddyriz) June 26, 2025
Missed Opportunities by Ripple and the SEC
Rispoli’s most pointed criticism lies in how poorly the motion was presented. On pages three and four of the ruling, Judge Torres cites the SEC’s prior language describing Ripple’s actions as “egregious,” “reckless,” and “dangerous.” This undermines claims that Ripple deserves leniency without a significant shift in its story.
Rispoli argues that this motion should have included signed declarations from SEC commissioners, publicly acknowledging that the agency’s prior stance was flawed. If Commissioner Hester Peirce or SEC Chair Paul Atkins had publicly disagreed with Gary Gensler’s enforcement approach, it might have influenced the court’s view. Their silence, he says, signals a refusal within the SEC to admit past mistakes, even under new leadership.
Whether due to a lack of coordination or outright refusal, the failure to present a strong and updated case contributed to the motion’s collapse. In Rispoli’s view, this reflects a systemic problem—an institutional instinct to protect the agency at all costs, even if it means undermining progress or fairness.
A Likely Settlement Path
Despite this setback, Rispoli is confident that the case is heading toward a final resolution. He predicts that Ripple and the SEC will eventually settle the appeal quietly, agreeing to the $50 million penalty while leaving Judge Torres’s core ruling in place. The decision that XRP is not a security in secondary market sales will stand, and the permanent injunction will remain largely symbolic.
While the SEC previously announced its intent to drop the appeal, Rispoli remains skeptical that it will do so in a way that truly benefits Ripple, such as by failing to respond to Ripple’s appellate brief, which would give Ripple a near-certain win. Instead, he expects a joint dismissal of all appeals to avoid further scrutiny from the courts.
Understanding the Injunction
A key concern among XRP holders has been the court’s injunction against Ripple’s XRP institutional sales. Rispoli, however, argues that the injunction carries little practical weight unless the SEC actively chooses to enforce it. Judge Torres herself acknowledged this, noting that any enforcement would require a separate motion.
Importantly, the injunction does not apply to secondary market transactions and will not impede any potential XRP ETF approvals. Rispoli also raises a legal point that has largely gone unaddressed—whether the SEC can issue waivers to override restrictions created by the injunction. According to his research, the SEC does have that authority, though whether it will use it remains uncertain.
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Ripple’s Operational Shift
Another telling detail emerged from Ripple Chief Legal Officer Stuart Alderoty’s statement following the court ruling. He referred to the company’s past behavior as “historic institutional sales”—a subtle yet significant change in language. Rispoli interprets this as a strategic signal that Ripple has adjusted its business practices to comply with the legal boundaries set by Judge Torres.
This language shift likely reflects an unspoken understanding between Ripple and the SEC. The company will continue institutional sales in a manner that aligns with current regulatory expectations, while the SEC agrees not to pursue further enforcement, at least under the current leadership.
A Broken System and the Case for Crypto
Rispoli closes with a strong critique of the SEC as an institution. Drawing on years of experience litigating against government agencies, he describes a system that prioritizes self-preservation over accountability. He cites past scandals, like the SEC’s misconduct in the Debt Box case, as evidence of a deeper institutional rot.
His support for crypto, he explains, stems from the desire to “opt out of a crumbling system.” For him, blockchain represents more than innovation—it’s a way to build a more transparent, accountable financial future, free from the bureaucratic failings that continue to plague agencies like the SEC.
Fred Rispoli’s analysis sheds light on not just the legal minutiae of the Ripple case but also the broader institutional and political currents shaping its trajectory. While Judge Torres’s decision dealt a temporary blow to Ripple’s hopes of closing this chapter, the path to resolution appears clear.
A settlement is likely, XRP remains unaffected in secondary markets, and Ripple seems poised to move forward, armed with lessons, legal clarity, and a commitment to compliance in a still-uncertain regulatory landscape.
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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