XRP News Today: Judge Rejects Ripple-SEC Settlement, Upholds $125 Million Fine

In the aftermath of Judge Analisa Torres’s rejection of the Ripple-SEC settlement, it has become clear that the deal was troubled even before the judge’s ruling. Legal analyst MetaLawMan highlighted a rare public dissent from SEC Commissioner Caroline Crenshaw as a key signal that foreshadowed the deal’s collapse, indicating that the judge was not the only one with serious doubts.

Before Judge Torres issued her ruling, SEC Commissioner Crenshaw took the unusual step of publicly stating her opposition to her own agency’s settlement with Ripple. In a powerful signal to the court, Crenshaw wrote, “I cannot support our settlement. I urge the courts to take a long hard look at the Commission’s attempt to claw back the meritorious claims it previously made.” According to Crenshaw, the deal would severely weaken the SEC’s authority and undo the integrity of its previous legal claims. Consequently, the judge’s latest move to uphold her earlier injunction and fine against Ripple signals her disapproval of both parties trying to sidestep judicial accountability.

In a ruling delivered, Judge Torres declined a joint motion filed by Ripple Labs and the SEC. The motion sought to reduce Ripple’s penalty from $125 million to $50 million and set aside a permanent injunction. However, Torres firmly rejected that idea. She stated that neither side had demonstrated exceptional circumstances to justify such changes. According to her, the parties lacked the authority to undo a court’s final ruling, especially one involving violations of congressional law. The case stems from Ripple’s sale of XRP, particularly in institutional transactions that Torres previously ruled as illegal securities offerings. Despite agreeing that XRP traded on public platforms does not meet the legal standard of a security, she stood by her injunction. Her position emphasized that courts, not agencies or companies, must enforce accountability when laws are broken.

The judge’s decision effectively unravels the settlement and puts the entire case back in motion. Stuart Alderoty, Ripple’s Chief Legal Officer, acknowledged the setback but noted that the company has yet to decide on its next legal step. The SEC, on the other hand, declined to comment. This case remains one of the highest-profile crypto enforcement actions in recent memory. The development comes at a time when the SEC has been dropping other high-profile crypto cases. This ruling, however, serves as a stark reminder that the judiciary has the final say. The Ripple case remains open, highlighting the ongoing legal and regulatory battles that will continue to shape the crypto industry.