Stay informed on Judge Torres’s key rulings in the XRP case—from the 2023 classification decision to the June 2025 penalty rebuff and her recent step‑aside—plus what’s next for appeals, XRP price, and crypto regulations.
The legal saga of XRP has been captivating the crypto world, and at its epicentre stands U.S. District Judge Analisa Torres. From landmark rulings to procedural denouements, her decisions have shaped XRP’s status and its place in crypto regulation.
The Pivotal 2023 Ruling: XRP Isn’t Always a Security
On July 13, 2023, Judge Torres issued a groundbreaking judgment in SEC v. Ripple Labs. She determined that XRP token sales on public exchanges do not constitute securities transactions under U.S. law.
However, she simultaneously ruled that XRP sales to institutional investors—amounting to $728 million—did meet the legal threshold and required compliance with securities regulations.
That mixed outcome stunned the industry and prompted major legal scrutiny, effectively reframing how tokens can be classified based on who sells them and how.
Follow‑Up: The $125 Million Penalty and Appeals
Following that decision, Torres imposed a $125 million civil penalty on Ripple. In June 2025, both Ripple and the SEC jointly moved to vacate the injunction and slash the penalty to $50 million.
Their motion was decisively rejected. Judge Torres reminded the parties that settling outside the appeals process cannot override a final court judgment.
She wrote firmly that private agreements cannot override judicial rulings, stating that only exceptional circumstances—absent in this case—could warrant such relief.
July 2025: Torres Steps Aside, Appeals Now Central
Fast-forward to July 2025, and a new phase has begun. Reports indicate that Judge Torres has concluded her active role in the case. The spotlight now turns to whether Ripple and the SEC withdraw their appeals.
Legal experts like Marc Fagel have confirmed that once both appeals are dropped, Torres’ prior orders will go into effect, officially closing the matter, with no further judicial action required.
Market Reaction & XRP Sentiment
Despite the procedural wrangling, XRP holders have shown resilience. After the June denial, the token’s price held steady, signalling to analysts that market confidence remains intact.
Additionally, recent on-chain data shows significant XRP flow into self-custody wallets—about $270 million withdrawn in the past week—possibly signalling bullish investor sentiment.
What’s Next: Key Milestones & Investor Watchlist
Here’s what to track in the coming weeks:
- ✅ Appeal Withdrawal: Both parties must file to formally drop appeals.
- 🗓️ Final Judgment Effective Date: Once appeals are withdrawn, the ruling becomes enforceable.
- 📊 Market Reaction: Watch for price movement as the final judgment takes effect.
- 🧩 Regulatory Precedent: The resolution will have ripple effects—pun intended—on how other digital assets are classified.
Final Takeaway
Judge Torres’ journey—from determining the dual status of XRP in 2023 to rejecting settlement shortcuts in 2025, and finally stepping back—highlights the complex interplay between crypto innovation and securities law.
Now, all eyes are on the SEC and Ripple as they decide whether to drop appeals and close this regulatory chapter.
Once that happens, expect significant market and legal movement, as the final outcome will set a precedent for the tokenised future.
