Why Judge Torres Refused to Drop XRP Lawsuit
Why Judge Torres Refused to Drop the XRP Lawsuit
Judge Analisa Torres rejected the joint request from Ripple and the SEC to dismiss the XRP lawsuit. Former SEC attorney Marc Fagel provided insights into the reasons behind her decision.
1. Institutional Unregistered Sales Drove the Ruling
Ripple conducted institutional XRP sales worth hundreds of millions of dollars without SEC registration. This legal violation gave Judge Torres clear grounds to maintain the injunction.
2. The Judge’s Authority Is Limited to the Case
Judge Torres emphasized that her jurisdiction only extends to the issues presented before her. She could not make determinations about Ethereum or other tokens since they were not part of the lawsuit.
3. High Standard for Vacating Judgments
Federal law requires extraordinary circumstances to vacate a final judgment. Neither Ripple nor the SEC met this threshold. Even if both parties agreed to end the case, they could not unilaterally erase the court’s ruling.
4. Public Interest and Legal Integrity Guided the Decision
Judge Torres underscored that the injunction and penalty were necessary to protect investors and uphold the rule of law. Since the underlying securities violations remained unresolved, she declined to drop the injunction.
What This Means for Ripple and XRP
Impact Area | Implication |
|---|---|
Institutional XRP Sales | Ripple must register future institutional sales to comply legally. |
Permanent Injunction | Restrictions remain unless overturned through formal appeals. |
Settlement Strategy | A private agreement cannot override the judgment. |
Next Steps in Litigation | The injunction stays in effect until appeals are resolved. |
Conclusion
Judge Torres’ refusal to dismiss the XRP lawsuit stems from clear legal factors: unregistered sales, strict standards for vacating judgments, and a commitment to protecting the public interest. Ripple must now either comply with the injunction or pursue further appeals, closing the door on a quick settlement.