The ongoing legal standoff between Ripple Labs and the U.S. Securities and Exchange Commission took another sharp turn after Judge Analisa Torres denied a joint request from Ripple and the SEC that aimed to finalize penalty terms and wrap up the case.
The court did not accept the filing aiming to settle the civil penalties and permit withdrawals from appeals. With this choice, the lawsuit continues to influence the topic of crypto rules in the U.S.
Though the decision brings more legal delays, the judge has confirmed XRP’s status before. Judge Torres previously determined that the sale of XRP on public exchanges does not constitute a security. Notably, during its appeal, the SEC did not contest that finding.
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Bill Morgan Confronts False XRP Narrative Amid Legal Setback
Amid renewed legal uncertainty, fresh claims circulated online questioning XRP’s legitimacy. According to a tweet by @ScamDetective5, XRP lacks legal clarity and institutional backing and plays no role in central bank digital currencies.
The post also asserted that only Bitcoin is held in the U.S. reserve. This claim sparked an immediate reaction from pro-XRP lawyer Bill Morgan, who labeled it as false and misleading through his Twitter account @Belisarius2020.
This is a lie. XRP has been found by a judge not itself to be a security. The SEC Appeal did not challenge that finding. To say XRP has no legal clarity is the biggest lie I have seen in crypto this year. https://t.co/6x1AycUxja
— bill morgan (@Belisarius2020) June 1, 2025
He vigorously refuted the idea that XRP lacks legal clarity, highlighting that a federal judge had already ruled that XRP itself is not a security.
If the SEC had chosen to appeal the judge’s verdict, the matter might still be unclear. He said the claim was “the biggest lie in crypto this year” and pointed out that no court had ruled XRP to be a security.
The attorney discussed the fact that some critics believed the judge’s comments were not legally enforceable. He said that parts of the judgment called dicta can still impact and guide future court decisions.
At the moment, both sides are back at the table negotiating penalties, with XRP’s legal basis still a primary concern for everyone involved. How these talks go can affect future approaches taken by regulators in the digital asset sector.
Bill Morgan’s action stemmed from the fact that Judge Torres decided to continue the case. As the legal battle continues, XRP’s status remains unchallenged.
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