- Judge Torres has denied Ripple and the SEC’s request for a private settlement, reinforcing the July 2023 public ruling.
- The court ruled that no private deal can override a formal judgment, leaving limited legal options for both parties.
- Ripple and the SEC must submit a status update in August, either to proceed with an appeal or finalize a settlement.
Ripple has hit a significant roadblock in its ongoing legal saga with the U.S. Securities and Exchange Commission (SEC). In a decisive move, Judge Analisa Torres has rejected a joint request from both Ripple and the SEC to privately settle aspects of the case that could have potentially altered the impact of her earlier landmark judgment.
The two parties had hoped the court would approve a confidential settlement agreement that would bypass the binding public nature of the July 2023 ruling, where Judge Torres determined that Ripple’s XRP sales to institutional investors constituted unregistered securities offerings. However, in her latest ruling, Judge Torres made it unequivocally clear that private agreements cannot override or nullify formal judicial decisions.
In her statement, Judge Torres emphasized that the court’s judgment was rooted in established law, which remains unchanged. As such, there is no legal justification to vacate or amend the ruling. She further noted that neither Ripple nor the SEC holds the authority to invalidate or dismiss a public court decision through behind-the-scenes arrangements. If the two sides intend to resolve the dispute outside of court, they must either withdraw their appeals and accept the current verdict or continue to pursue the appellate process.
This development leaves both parties with limited options and has reignited speculation across the crypto legal landscape.
Ripple Settlement Likely by August After Latest Court Update
Crypto attorney Fred Rispoli shared his insights on social media following the decision. According to Rispoli, the next major development will come in August when Ripple and the SEC are required to submit a status report to the U.S. Court of Appeals for the Second Circuit. That report will disclose whether they intend to proceed with the appeal or if they’ve decided to settle the matter once and for all.
Also Read: Ripple Integrates XRP Ledger With Wormhole to Expand Multichain Interoperability
Rispoli believes that a settlement remains the most likely outcome, suggesting that an agreement could be announced as early as late July or early August 2025. Such a resolution would likely prevent the case from dragging on until 2026 or 2027, which is currently the expected timeline if appeals continue.
Meanwhile, attorney Bill Morgan also weighed in, echoing the judge’s sentiments. “As the judge points out, the parties can just agree to settle by withdrawing the appeals,” Morgan posted on X (formerly Twitter). “They could’ve done that any time over the last two months. But Ripple wanted more; it wanted the injunction dissolved.”
The latest court development is a clear reminder that judicial rulings carry the weight of law and cannot be sidestepped for convenience. As Ripple and the SEC deliberate their next steps, the entire crypto industry continues to watch this precedent-setting case with bated breath.
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