Judge denies SEC and Ripple's plea on XRP sales and $125 million fine
The Judge's Firm Stand: Ripple and SEC's Joint Motion Declined
In an unexpected turn of events, a federal judge has rejected the joint motion by Ripple Labs and the U.S. Securities and Exchange Commission (SEC) to clear the way for a $125 million settlement and lift the permanent injunction on Ripple's institutional XRP sales.
According to Reuters, U.S. District Judge Analisa Torres denied the motion, standing firm against the parties' attempts to reverse the order imposing restrictions on Ripple's institutional XRP sales, which were imposed back in 2024.
Ripple and the SEC's Settlement Ambitions Thwarted
The denied motion marks the second attempt for a legal resolution in this long-running case. The motion included a request for the court to approve a settlement where the SEC would retain $50 million and return $75 million of the $125 million civil penalty. Additionally, both parties sought a pause in their appeal of the final judgment pending the outcome of this motion.
Precedent Not Set as Other Cases Dismissed
Judge Torres rejected the latest motion, maintaining that it did not meet the "exceptional circumstances" required for a court to modify or vacate a final judgment. An earlier motion, filed on June 12, 2025, also requesting an "indicative ruling," met the same fate, failing to persuade the court.
It's essential to acknowledge that arguments pointing to the SEC's dismissal of similar or related crypto cases do not apply to the Ripple vs. SEC case, as those other lawsuits did not lead to a final ruling.
Judge Torres' Ruling: Final Court Decisions Aren't Easy to Overturn
In her ruling, Judge Torres emphasized the importance of finality in court decisions, indicating that once a judgment is final, it can only be altered when truly exceptional reasons are shown—reasons Ripple and the SEC did not adequately present.
The judge's decision suggests a cautious judicial approach, ensuring the case is fully resolved before easing penalties or injunctions, reflecting the broader regulatory scrutiny on crypto assets like XRP.
Ripple's Next Move Remains Unclear
With this ruling, the ball has been passed back to Ripple. Stuart Alderoty, Ripple's chief legal officer, has stated that the company is still evaluating its next steps regarding the matter.
"The Court has given us two options: either dismiss our appeal challenging the finding on historic institutional sales or press forward with the appeal. Stay tuned. Either way, XRP's legal status as not a security remains unchanged," Alderoty posted on X.
With the legal challenges still in place, the XRP market continues to operate under uncertainty. The judge's decision underscores the importance placed on fully resolving cases before making any significant adjustments to penalties or injunctions.
- Ripple's search for a settlement with the SEC was stalled as the judge declined the joint motion to lift the restrictions on Ripple's institutional XRP sales, which could have seen the SEC retaining $50 million and returning $75 million of the $125 million civil penalty.
- In the ongoing Ripple vs. SEC case, Judge Torres emphasized that the court's final decisions aren't easy to overturn, maintaining that the latest motion did not meet the exceptional circumstances required to modify or vacate a final judgment.
- The judge's firm stance on upholding the court's final decisions could potentially set a precedent for future legal challenges in the crypto finance business, such as those involving XRP, dex, token, and ICO.
