XRP is not considered a security in secondary market sales, according to Judge Torres’ 2023 ruling, which the SEC did not appeal.

Lawyer Bill Morgan argues that XRP now has more legal clarity than Bitcoin, which has never been subject to a similar judicial ruling.

The recent joint settlement request was rejected, prolonging the penalty phase but not reversing XRP’s key legal win.

In the ongoing SEC vs Ripple lawsuit, U.S. District Judge Analisa Torres has rejected a joint request from both Ripple Labs and the U.S. Securities and Exchange Commission. The proposed settlement aimed to finalize the long-running legal dispute by adjusting penalty terms and allowing both parties to withdraw their respective appeals. However, Judge Torres refused to sign off, keeping the case very much alive.

The latest decision has sent ripples through the crypto community, reigniting debate over XRP’s legal status and the broader regulatory uncertainty surrounding digital assets. The rejected filing was expected to mark the end of one of the most closely watched enforcement actions in crypto history. Instead, it forces Ripple and the SEC back into negotiations over penalties, delaying any final closure.

The court’s decision came just as misinformation began spreading online, with a now-viral post claiming that XRP lacks legal clarity and does not have institutional or central bank support. The post falsely asserted that no major CBDCs are built on the XRP Ledger (XRPL) and even suggested that only Bitcoin is recognized in U.S. reserve frameworks.

SEC Did Not Appeal XRP Security Ruling Decision

These claims were swiftly and strongly refuted by well-known pro-XRP lawyer Bill Morgan, who called the post “the biggest lie I’ve seen in crypto this year.” Morgan reminded the community that Judge Torres had already ruled in 2023 that XRP itself is not a security, especially when traded on secondary markets, a decision that the SEC notably did not appeal.

Some legal skeptics attempted to downplay Judge Torres’ comments as mere dicta, legal observations that are not binding. But Morgan pushed back hard, explaining that even if considered dicta, the judge’s reasoning carries a persuasive authority that other courts can cite. “No court has found XRP to be a security,” he emphasized, “and the coin now arguably has more judicial clarity than Bitcoin, which has none.”

This perspective has resonated across the XRP community, which has long sought regulatory clarity in the United States. Despite institutional hesitation, many experts argue that the coin is among the most legally vetted crypto assets in the market today.

XRP Case Drags On But Key Ruling Stands

While Judge Torres’ decision delays the endgame, it does not undermine the legal clarity around XRP that was established in her landmark ruling. The primary takeaway that XRP is not inherently a security still stands and remains unchallenged in appellate courts.

Legal analysts believe both Ripple and the SEC will resume discussions to resolve the penalty phase. Though the immediate path forward is less certain, the core outcome of the case remains intact. The rejected motion may prolong the process, but it doesn’t reverse Ripple’s critical legal win.

The SEC vs. Ripple lawsuit continues to serve as a high-profile battleground for defining crypto regulation in the U.S. While the recent rejection adds another layer of drama, it doesn’t erase the important progress already made, especially the fact that the coin has achieved a degree of legal recognition that few digital assets have.

For now, the coin holders and investors can find reassurance in knowing that the token’s legal foundation remains strong, even as the fight over penalties enters another round.

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Filed under: Bitcoin - @ June 2, 2025 10:27 am