Why did Judge Torres not dismiss the XRP lawsuit? Former SEC lawyer provides an explanation.

Gate News bot news, just as the XRP community is pondering the recent ruling made by Judge Torres in the Ripple lawsuit, former SEC lawyer Marc Fagel explained via a post on X why the judge did not dismiss the case.

Fagel stated that the reason the judge did not dismiss the case may be because she found that Ripple raised hundreds of millions of dollars through unregistered securities sales. Fagel said that Ripple is suspected of conducting illegal financing through unregistered securities sales, so it is necessary to take action. His statement is as follows:

"It may be because she discovered that Ripple raised hundreds of millions of dollars illegally through unregistered securities sales. So why did she want to 'dismiss' this case (whatever that means)?"

Recently, Judge Torres denied the joint motion filed by Ripple and the SEC in the XRP lawsuit. Subsequently, Ripple withdrew its appeal and agreed to pay a fine of $50 million.

Another issue that has sparked discussion on platform X is the potential impact of the case. A user on X expressed concerns about whether the significant resources invested in this lawsuit effectively serve the SEC's primary goals: protecting investors, maintaining fair and efficient markets, and promoting capital formation. Fagel pointed out in another response that if the company does not wish to comply with federal law, it should attempt to change it; they do not have the authority to decide which laws apply.

In addition, regarding the judge's silence on Ethereum, he pointed out that she could only rule on the case before her, which means that Ethereum is not part of the Ripple lawsuit. Fagel also added that Judge Torres is no longer playing any role in the Ripple lawsuit, stating: "Judge Torres is no longer playing any role in this case. Once the SEC votes to approve the dismissal of the appeal and submits the documents to the appellate court (which has not yet happened), her ruling will take effect."

It is worth noting that Judge Torres has classified XRP's institutional sales as a securities offering. Since this ruling stands, Ripple must cease institutional sales or comply with securities laws.

Previously, XRP attorney Bill Morgan stated that Ripple is ready to issue a permanent injunction against the "historical institutional sales."

Morgan clarified in a recent post the impact of the Ripple lawsuit ruling on XRP sales. Although a community member argued that the case would not affect future sales of XRP but only past issuances, Morgan stated: "You do realize that injunctions like the one against Ripple are intended to restrict current or future conduct. So how does it apply to restrict actions that have already occurred in the past?"

The market shows that as of the time of writing, XRP is currently at $2.19, with a 24-hour increase of 0.4%.

Source: CoinGape