Judge Analisa Torres denied both the SEC and Ripple’s requests for an indicative ruling on their proposed $50 million settlement, emphasizing judicial independence in enforcement decisions. Her rejection challenges the parties’ attempt to predetermine penalty terms without court oversight. The ruling asserts that settlements must undergo rigorous judicial review, especially in precedent-setting cases.
This decision prolongs the legal battle over XRP’s regulatory status, maintaining uncertainty for market participants. Judge Torres’ insistence on evaluating the settlement’s fairness aligns with her earlier ruling that XRP sales to institutions constituted unregistered securities offerings. The move signals courts’ reluctance to rubber-stamp negotiated resolutions in high-stakes crypto cases.
The denial may compel both sides to reassess litigation strategies. For Ripple, it delays closure; for the SEC, it complicates efforts to establish swift enforcement precedents. The case continues to test regulatory boundaries for token sales.
