A U.S. federal judge has denied a joint request from the Securities and Exchange Commission (SEC) and Ripple Labs for an indicative ruling, a move that could have sped up the long-running legal battle between the regulator and the blockchain firm. The decision adds yet another layer of delay in a case that has significant implications for the broader cryptocurrency industry.
What Is an Indicative Ruling?
An indicative ruling is a judicial tool used when a case is under appeal but both parties seek guidance from the trial court on how it might rule if jurisdiction were restored. In this instance, the SEC and Ripple were jointly requesting the court’s opinion on penalties and remedies, hoping to streamline the appeals process and avoid unnecessary litigation steps.
Judge Analisa Torres, however, rejected the motion, citing procedural concerns and a preference for the case to proceed in the standard manner. This means both parties must continue with the traditional path of litigation before any potential appeal can move forward.
Impact on the Ongoing SEC v. Ripple Lawsuit
The SEC initially filed a lawsuit against Ripple in December 2020, alleging the company conducted an unregistered securities offering through the sale of XRP tokens. Ripple has vigorously contested the charges, arguing that XRP is not a security and should not be subject to SEC jurisdiction.
In a partial win for Ripple in 2023, the court ruled that programmatic sales of XRP on public exchanges did not constitute securities transactions. However, it maintained that certain direct institutional sales may have violated securities laws. This mixed ruling left both parties seeking further clarification and resolution on remaining issues—hence the now-rejected indicative ruling request.
Industry Reaction and Market Uncertainty
Crypto industry leaders have expressed frustration over the continued delays in resolving the case, which has become a symbol of regulatory uncertainty in the United States. Many were hoping the request for an indicative ruling would help conclude the legal saga faster and bring much-needed clarity to how digital assets are regulated.
XRP’s price saw slight fluctuations following the court’s decision, reflecting market impatience as traders and investors await a final judgment. Until then, Ripple remains in a state of legal uncertainty that could impact its future operations, partnerships, and token usage.
Final Thoughts
The federal judge’s refusal to provide an indicative ruling means the Ripple-SEC case will likely drag on further, prolonging the legal ambiguity surrounding XRP and similar crypto assets. While some progress has been made, a full resolution remains out of reach—leaving stakeholders once again waiting on the court’s next move.