Ripple CLO Confirms XRP's Non-Security Status Amid Court Ruling Twist

Ripple's Chief Legal Officer, Stuart Alderoty, has reaffirmed that XRP remains classified as a non-security despite a recent legal development that some initially viewed as a setback. The clarification follows Judge Analisa Torres’ rejection of a joint motion filed by Ripple and the U.S. Securities and Exchange Commission (SEC) seeking an indicative ruling in the ongoing case. The motion aimed to determine how Judge Torres might rule if the matter were remanded by the Second Circuit. However, the judge dismissed the request as "procedurally improper," citing that the parties had not met the stringent legal standards for altering the existing injunction or reducing the financial penalties.

Alderoty emphasized that the ruling does not reverse Ripple's previous legal victories and that XRP remains safe from regulatory reclassification. He added that Ripple and the SEC will revisit the issue and continue engaging with the court.

The case has garnered fresh attention, especially from the XRP community. Attorney John Deaton, a prominent pro-XRP voice, referred to the ruling as a legal “curveball,” noting that while it’s not a major blow, it complicates the path forward. Deaton also acknowledged that Judge Torres is signaling her intent to closely scrutinize any proposed settlement amendments, rather than simply approving them.

The initial settlement between Ripple and the SEC involved withdrawing appeals in exchange for lifting the injunction on institutional XRP sales and reducing Ripple's fine. However, that agreement now faces additional hurdles, as the court demands compelling justification to alter the final judgment in the public interest.

While the decision introduces a temporary delay, Ripple maintains confidence that this is just a minor obstacle, not a reversal of progress. XRP’s non-security status remains intact, reassuring investors and users alike.