Judge Analisa Torres wrote that Ripple is still required to follow federal securities laws regardless of the SEC’s regulatory pivot.
A US district court denied a joint motion from the US Securities and Exchange Commission (SEC) and Ripple requesting an indicative ruling to reduce a $125 million civil penalty and reverse an order defining primary sales of XRP (XRP) to institutional investors as securities transactions under Article 5 of the Securities Act.
An indicative ruling allows lower courts like the district court to issue orders for a case that is pending review in the higher appellate court system, subject to approval from the higher court.
In a Thursday filing in the United States District Court for the Southern District of New York, Judge Analisa Torres wrote that the court would not undo the earlier rulings, including the $125 million penalty, which were consistent with federal securities laws passed by Congress. Torres argued:
