XRP News Today: Ripple Fails to Reduce $125 Million Penalty in SEC Case

In a recent legal development, U.S. District Judge Analisa Torres has rejected a joint appeal from Ripple Labs and the Securities and Exchange Commission (SEC) to amend a $125 million penalty and lift legal constraints on Ripple’s institutional XRP sales. This decision maintains the injunction imposed in 2024, which restricts Ripple from engaging in certain activities related to XRP.

The joint request, submitted earlier this month, was the second attempt by both parties to convince the court to dissolve the permanent injunction and reduce Ripple’s civil penalty under a proposed settlement. The parties sought to dissolve the injunction against Ripple and reallocate the $125 million civil penalty, proposing that $50 million be paid to the SEC and the remaining $75 million returned to Ripple. However, Judge Torres rejected this proposal, citing the need for finality in court decisions and the lack of "exceptional circumstances" necessary to justify modifying a final judgment.

Judge Torres' decision was based on the strict legal standard required to alter a final judgment. She dismissed the idea that a change in SEC policy or a newly formed crypto task force justified erasing the penalty. The parties had cited other crypto-related cases where the SEC had voluntarily dismissed their lawsuits, but Judge Torres noted that those cases never reached a final ruling. In each example, the SEC withdrew before any court determined that a legal violation had occurred.

The ruling emphasized that the SEC and Ripple must follow the proper legal process if they wish to have the court’s rulings erased. The simplest way to end the case, according to Judge Torres, would be for the parties to withdraw their pending appeals. Otherwise, they must appeal the decision through the court system.

Judge Torres also cited a “compelling case” built by the SEC over four years, which alleged that Ripple offered and sold XRP to investors as an unregistered security. This case, along with the strict legal standards, played a crucial role in her decision to deny the joint motion.

The denial of the joint motion means that the final judgment in the Ripple case stands, and Ripple will continue to face the $125 million penalty and the legal constraints imposed by the injunction. This ruling is a significant setback for Ripple, as it prevents the company from engaging in certain activities related to XRP and forces it to pay a substantial penalty. The decision also highlights the importance of following the proper legal process when seeking to modify a final judgment.

Meanwhile, the SEC's stance towards the crypto industry has evolved significantly. Under the administration of Donald Trump, the SEC appointed pro-crypto leaders to the regulatory bloc. In mid-June, the SEC announced additional new staff appointments, including professionals with notable experience in the cryptocurrency and blockchain industry. Jamie Selway, for instance, was hired as director of trading and markets. Selway had previously served as global head of institutional markets at Blockchain.com from 2018 to 2019.