US District Judge Analisa Torres ruled on June 26 that the court will not grant the parties’ request for an “indicative ruling.” The decision blocks attempts to dissolve the injunction against Ripple and to reduce the firm’s penalty by more than half.
Ripple and the SEC had asked the court to signal willingness to approve a negotiated resolution. That would have ended the dispute without proceeding through appeals. Instead, Judge Torres rejected the motion outright, ordering the clerk to terminate it.
Ripple and SEC’s Courtroom Frustration to Continue
The ruling keeps Ripple barred from selling XRP to institutional investors. It also preserves the original penalty amount imposed in the 2023 summary judgment, which the SEC argued could total nearly $200 million.
Judge Torres’ decision leaves the path forward unclear. Both sides had paused appeals in anticipation of a favorable ruling. With this motion denied, those appeals may now resume.
The next key date is August 15. The SEC must file a status report with the court outlining its next steps. Ripple could also respond or file a new motion before then.
If no resolution is reached, the case could return to the Second Circuit Court of Appeals. That would extend the legal process into late 2025 or beyond.
The underlying ruling from July 2023 remains in place. That judgment found Ripple’s programmatic XRP sales on exchanges were not securities, but sales to institutional buyers were.
For now, institutional XRP sales remain restricted, and the penalty against Ripple stands unresolved. The parties face a renewed legal fight unless they revise their agreement or reach a new settlement.
Will Judge Toress Drag the XRP Lawsuit Into 2026?
There is a real risk now that the XRP lawsuit can continue into 2026, but only if the parties choose to resume full appeals and no new settlement is reached.
The market has already shown signs of this fear, as the altcoin has dropped over 3% since today’s news.
The joint motion denial means there’s no shortcut to resolve the injunction and penalty issues. If Ripple or the SEC now reignite their appeals, the case moves back to the Second Circuit Court of Appeals, which can take several months to a year to rule.
After the appeal, the case might return again to the district court for further actions, adding more time.
However, Ripple and the SEC could still submit a new, revised joint motion that addresses the court’s concerns. They could reach a settlement outside of court, ending the case without further litigation.
Also, Judge Torres might issue an independent order or signal a framework for resolution before appeals resume.
To sum it up, the XRP lawsuit extending into 2026 is now a real possibility, but not guaranteed. Much depends on the next move by the SEC and Ripple, especially after the August 15 court update deadline.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
