The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) continues to drag on with no immediate resolution. Judge Analisa Torres recently denied a joint request from both parties seeking an indicative ruling. She cited procedural missteps as the reason for her dismissal.
Last week, Ripple and the SEC filed a motion requesting that Judge Torres vacate her 2024 judgment and reduce Ripple’s penalty from $125 million to $50 million. That judgment previously ruled that Ripple’s XRP sales on secondary markets did not constitute securities offerings. However, despite the consensus, the request failed due to procedural shortcomings.
Ripple’s Cross-Appeal Remains Active
Although the SEC officially withdrew its appeal in March, Ripple’s cross-appeal remains in motion. This cross-appeal seeks to address multiple unresolved issues, including the challenge to the initial $125 million fine. To move forward, both sides required an indicative ruling—a non-binding statement by the court indicating how it might rule on a pending matter under its jurisdiction.
Reacting to the dismissal, Ripple’s Chief Legal Officer Stuart Alderoty noted that the team would revisit the matter with the court. In his opinion, the setback is temporary, and further action will soon follow.
Legal Experts Weigh In
Pro-crypto attorney Fred Rispoli criticized the decision, calling it a waste of the court’s time after five years of litigation. Still, he expressed optimism that the case could see a resolution within a month.
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Interestingly, XRP holders appeared unfazed by the legal stall. Data from CoinGlass revealed that within the past 12 hours, nearly $50 million worth of XRP had been withdrawn from centralized exchanges and moved into self-custody wallets. This trend extended over a seven-day period, with over $270 million in outflows, suggesting growing investor confidence and anticipation of future gains.
Retail Activity Signals Room for Growth
At the same time, retail activity in the XRP futures market remained neutral. This contrasted with the heavy retail participation seen during previous price peaks, which often signaled market tops.
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The subdued retail interest now suggests more potential upside for XRP, as fewer retail traders tend to accompany longer-term bullish momentum. While Judge Torres’ recent dismissal delayed immediate progress, Ripple’s legal team remains committed to resolving the case.
With XRP withdrawals from exchanges increasing and retail activity holding steady, the market sentiment leans bullish. As legal proceedings evolve, all eyes remain on the court’s next move and its potential impact on XRP’s trajectory.
