However, XRP extended its losing streak to three sessions on June 21 as investors awaited Judge Analisa Torres’ pivotal ruling on settlement terms in the SEC vs. Ripple case. Ripple and the SEC filed a second joint motion on June 12, requesting an indicative ruling to lift the injunction prohibiting XRP sales to institutional investors and reducing the $125 million penalty.
Judge Torres rejected the first filing, citing procedural errors and inadequate arguments that a settlement serves the public and institutional investors.
Since Judge Torres’s first ruling, XRP tumbled from $2.5712 to Saturday’s low of $1.9998, underscoring market anxiety over the looming decision.
Judge Torres denied the first motion within seven days, and the silence since the second filing has left XRP in limbo.
Why Does the Settlement Matter?
If Judge Torres delivers a favorable indicative ruling, Ripple would withdraw its cross-appeal, and the SEC would drop its appeal. The SEC appealed against the Programmatic Sales ruling, where Judge Analisa Torres surmised that programmatic sales of XRP did not satisfy the third prong of the Howey Test.
An end to the Ripple case could expedite the approval of pending XRP-spot ETF applications. Spot ETF inflows may send the token to record highs. On the other hand, if the SEC pursues its appeal, XRP may face intense selling pressure. In a worst-case scenario, a successful appeal may lead to:
