27.06.2025 09:54

US District Judge Analisa Torres has rejected a joint request from the Securities and Exchange Commission (SEC) and Ripple Labs to issue an indicative ruling. This request aimed to lessen the $125 million civil penalty levied against Ripple and overturn a previous ruling classifying certain XRP sales as securities transactions under the Securities Act of 1933. The SEC and Ripple sought this preliminary decision to influence the ongoing appeals process.

An indicative ruling, subject to higher court approval, allows lower courts to provide guidance on cases under appellate review. However, Judge Torres's decision, filed in the US District Court for the Southern District of New York, firmly rejected this approach. Her reasoning centered on the principle that altering the existing rulings, including the significant financial penalty, should only occur through the established appeals process as outlined by Congress, not through direct intervention by the lower court.

In her order, Judge Torres emphasized that the original rulings, upholding the SEC's partial victory, remained valid and unchanged. She specifically cited Ripple's behavior as a key factor in her original decision, arguing that the company's actions indicated a continued risk of future securities law violations. Therefore, she saw no justification for revisiting her earlier determinations. The judge unequivocally stated that the agreed upon penalty and injunction could only be modified via the appeals process, preventing any attempt to circumvent the existing legal framework.

Following the ruling, Cointelegraph attempted to obtain a statement from Ripple's legal team but had yet to receive a response at the time of publication. The decision underscores the limitations of lower courts in modifying judgments while appeals are pending and highlights the importance of the formal appellate process in resolving legal disputes. The rejection effectively maintains the status quo, leaving the outcome to the higher courts.