In a significant legal development impacting the cryptocurrency market, a New York judge has firmly rejected a joint request from the U.S. Securities and Exchange Commission (SEC) and Ripple Labs to approve a revised settlement. The proposed deal aimed to drastically reduce Ripple's civil penalty and, crucially, dissolve a permanent injunction against the company. This ruling from District Judge Analisa Torres of the Southern District of New York introduces fresh uncertainty into the long-running legal battle, directly affecting trading sentiment around the XRP token. Despite the seemingly bearish news, XRP's price action has remained remarkably stable. The XRPUSD pair is currently trading around $2.1865, showing only a minor 0.17% decrease over the past 24 hours. This resilience suggests that traders may have already priced in a level of legal friction or are awaiting a more definitive conclusion before making major moves. The 24-hour trading range has been tight, oscillating between a low of $2.1781 and a high of $2.1986, indicating a period of consolidation.

Judge Torres Upholds Injunction, Citing Public Interest

The core of Judge Torres's rejection was not the financial component of the settlement—which proposed cutting Ripple's penalty from $125 million to $50 million—but the removal of the permanent injunction. According to the ruling, the judge emphasized the court's prior finding of a 'reasonable probability' that Ripple would continue to violate federal securities laws. She questioned the rationale behind removing the injunction, stating, “Indeed, if the Court should not be concerned about Ripple violating the law, why do the parties want to eliminate the injunction that tells Ripple, ‘Follow the law’?” This stance underscores the court's commitment to upholding its initial judgment, which was based on the premise of protecting the public interest and ensuring legal compliance. Judge Torres made it clear that the parties cannot simply agree to nullify a court's final judgment without demonstrating exceptional circumstances that outweigh the administration of justice, a bar she noted they had “not come close” to meeting.

Navigating a Shifting Regulatory Landscape

This legal pushback occurs against the backdrop of what the source material describes as a significant shift in the SEC's regulatory posture following a change in leadership. Under a new, more crypto-friendly commission, the agency has reportedly dropped several investigations into crypto firms. However, Judge Torres highlighted that most of those cases were dismissed before any court had found a violation of law, distinguishing them from the Ripple case. This move by the SEC has drawn criticism, with Corey Frayer, director of investor protection at the Consumer Federation of America, stating that by “granting favors to crypto companies, SEC leadership has chosen to tarnish a 90 year reputation the agency carefully built.” For traders, this internal conflict between a court's mandate and an agency's shifting priorities creates a complex and unpredictable environment for XRP. The legal saga is far from over, as Judge Torres presented Ripple and the SEC with two options: withdraw their ongoing appeals or proceed with an appeal, both of which prolong the uncertainty.

Comparative Market Analysis: XRP vs. SOL

While XRP navigates its legal headwinds with a consolidated price, the broader crypto market shows pockets of significant strength, offering a valuable comparative insight for traders. Solana (SOL), for instance, is demonstrating robust positive momentum. The SOLUSDT pair is trading at $150.75, marking a nearly 3% gain in the last 24 hours on solid volume. Its strength is not isolated to the dollar pair; SOLBTC is up over 2.3%, trading at 0.00140030 BTC, indicating it is outperforming Bitcoin itself. Furthermore, the SOLETH pair has climbed 2.59% to 0.068000 ETH. This broad-based rally across multiple trading pairs—including SOLUSD and SOLUSDC—suggests strong underlying demand and positive sentiment for the Solana ecosystem. This divergence highlights a key trading theme: capital appears to be flowing towards assets with clear narratives and fewer legal encumbrances. While XRP is held in a tight range by its legal battle, assets like SOL are free to rally on technical and fundamental strength. For now, XRP traders should watch the immediate support at $2.1780 and resistance at the $2.2060 high on the USDT pair, as a break in either direction could signal the market's next short-term move in response to any further legal news.