The XRP lawsuit just took a sharp turn, and many are asking why Judge Analisa Torres didn’t drop the case against Ripple. Former SEC lawyer Marc Fagel jumped into the conversation on X (formerly Twitter), offering key insights into the judge’s decision.
Fagel pointed out that Judge Torres likely didn’t dismiss the case because she found Ripple had raised hundreds of millions of dollars through unregistered securities sales. “So why would she drop it?” Fagel asked, backing the judge’s stance.
Recently, Judge Torres rejected a joint motion by Ripple and the SEC. Following this, Ripple agreed to drop its appeal and pay a $50 million penalty. But the discussion didn’t end there.
Some users on X wondered whether the protracted legal struggle was really beneficial to the cause of the SEC to safeguard investors and ensure fairness in the market. Fagel responded strongly, saying, “If the company didn’t want to comply with federal law, they should try to change it.”
When asked about Ethereum, Fagel clarified that Judge Torres can only rule on what’s presented in court and Ethereum wasn’t part of the Ripple case. He also confirmed that Judge Torres has no further role now; the case moves forward only after the SEC formally dismisses its appeal.
The ruling still impacts XRP’s future. Since institutional XRP sales were found to be securities offerings, Ripple must now either stop those sales or fully comply with securities laws. A permanent injunction is likely on the way.
