XRP News Today: Judge Denies Ripple SEC Penalty Reduction Bid

Prominent attorney and long-time XRP advocate John Deaton has shared his thoughts on the latest developments in the legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple. Judge Analisa Torres denied a joint motion by Ripple and the SEC to reduce Ripple's $125 million civil penalty and lift the injunction on its future institutional XRP sales. Deaton, who has been closely following the case, stated that while he believed the judge might ultimately grant the indicative ruling, he was not surprised by her decision. This reflects a balance between expectation and acknowledgment of the legal complexities surrounding the case.

Judge Torres’ decision was grounded in the SEC’s failure to meet the legal standards required to dissolve the injunction. Deaton explained that the judge pointed out the SEC cited the wrong legal rule in its motion and had not demonstrated the presence of exceptional circumstances that would justify reversing or dissolving the prior injunction. Judge Torres made it clear that the bar for dissolving an injunction is set very high, emphasizing that her original decision was based on the law and that simply deciding to change course would not be sufficient justification. Deaton noted her firm stance, summarizing her message as requiring the SEC to present substantial justification, not mere convenience.

Deaton also expressed his view that the judge appeared frustrated by the SEC’s approach. He commented that the judge has dedicated over four and a half years to this case, investing significant time, resources, and judicial effort. The SEC’s sudden pivot, which initially pursued a $1.3 billion penalty but later asked the court to reduce the $125 million fine by 60%, seemed insufficiently justified from her perspective. Deaton suggested that this abrupt change in position likely contributed to the judge’s demand for a higher standard of explanation, framing it as an understandable reaction given the magnitude and duration of the litigation.

Deaton further commented on the quality of the briefings presented by both the SEC and Ripple in response to the court’s requirements. He expressed disappointment, stating that he had expected a more detailed and thorough submission. His remarks suggested that both parties, particularly the SEC, underestimated the burden of proof required to satisfy the court’s demand for exceptional circumstances. He reiterated that the judge’s insistence on more substantial evidence and reasoning reflects the serious nature of changing a court order. Deaton’s analysis indicates that Judge Torres is maintaining strict adherence to legal standards rather than allowing procedural shortcuts.

The denial of the joint motion and the subsequent decisions by Ripple and the SEC to drop their appeals mark a turning point in the legal battle. The case has defined the regulatory landscape for the crypto industry for nearly five years, and its conclusion brings a sense of finality to the ongoing debate over the legal status of cryptocurrencies. With the legal uncertainty surrounding XRP now resolved, Ripple can shift its focus back to expanding global payment corridors, token utility, and adoption of its XRP Ledger. This shift in focus is crucial for Ripple as it advances its vision for an Internet of Value, a concept that aims to create a more efficient and inclusive financial system.