- Judge Torres denied Ripple and SEC’s motion to amend the final ruling.
- Bill Morgan says the settlement process is no longer progressing.
- Ripple now faces renewed legal uncertainty as unresolved appeals persist.
Following the latest decision from Judge Analisa Torres, legal commentators such as Bill Morgan have shared their perspectives on where the case is headed. In a tweet, Morgan argued that the Ripple–SEC settlement process has stalled after a federal judge rejected a key joint motion.
Specifically, the denial halts efforts to finalize a reduced penalty deal and overturn an earlier court injunction. The parties may now need to continue their appeals or consider alternative legal options.
Why Did the Settlement Process Stall?
In a detailed post on X, Morgan outlined a series of procedural attempts by both parties to finalize their settlement agreement. According to Morgan, Ripple and the U.S. SEC signed a settlement agreement earlier this year. Ripple signed on April 23, and the SEC signed on May 8.
The parties jointly requested a 60-day pause on their respective appeals and sought an indicative ruling from Judge Analisa Torres to modify the court’s earlier decision. However, their first motion was denied due to a procedural error. A second, corrected motion was filed on June 12, but it too was denied by the judge just yesterday.
Morgan noted that the failure to obtain the necessary court approval has effectively stalled the settlement process.
What Was Judge Torres’s Reasoning To Reject The Joint Motion
Notably, the motion Judge Torres rejected proposed lowering Ripple’s financial penalty from $125 million to $50 million and removing the court’s prohibition restricting the company’s further sales to institutions.
In her ruling, Judge Torres said both parties lacked the authority to nullify a final judgment that had found Ripple in violation of the law. She emphasized that the court’s role in protecting public interest and upholding justice outweighs the parties’ agreement.
“They have not come close to demonstrating exceptional circumstances,” Torres wrote. She added that if jurisdiction were restored, the court would still deny their request to revise the earlier ruling.
Ripple’s Next Steps Remain Unclear
Ripple Chief Legal Officer Stuart Alderoty acknowledged the ruling on X and said the company is still evaluating its next steps. The SEC has not issued a formal response. With no court approval of the settlement, the parties now face a decision: to move forward with their appeals, negotiate new terms, or consider alternative legal options.
Related: Ripple SEC Settlement May Arrive by April, Says Lawyer
The case, filed in 2020, remains one of the SEC’s most high-profile actions involving digital assets. The SEC has dismissed cases against Binance, Coinbase, and Kraken. However, Ripple’s case has been challenging to resolve as it reached a final judgment in August 2024.
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