XRP News Today: Judge Denies Ripple SEC Penalty Reduction Motion

Prominent trial attorney Fred Rispoli has provided a detailed analysis of Judge Analisa Torres’s recent ruling in the ongoing legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC). Rispoli’s commentary delves into the complexities of the case and its broader implications for cryptocurrency regulation under the current political environment.

Judge Torres recently denied a joint motion by Ripple and the SEC, which sought to reduce Ripple’s penalty from $125 million to $50 million and lift the injunction restricting its future institutional XRP sales. Rispoli suggests that the court had a clear path to grant the motion, given the SEC’s ongoing leadership transition and shifting stance toward crypto under the Trump administration. However, Torres rejected the motion outright, which Rispoli attributes to either the judge’s frustration after years of intense litigation or potential political bias against the new administration.

Rispoli’s critique focuses on how poorly the motion was presented. Judge Torres cited the SEC’s prior language describing Ripple’s actions as “egregious,” “reckless,” and “dangerous,” which undermines claims that Ripple deserves leniency without a significant shift in its narrative. Rispoli argues that the motion should have included signed declarations from SEC commissioners acknowledging that the agency’s prior stance was flawed. The absence of such declarations signals a refusal within the SEC to admit past mistakes, even under new leadership.

Despite this setback, Rispoli is confident that the case is heading toward a final resolution. He predicts that Ripple and the SEC will eventually settle the appeal quietly, agreeing to the $50 million penalty while leaving Judge Torres’s core ruling in place. The decision that XRP is not a security in secondary market sales will stand, and the permanent injunction will remain largely symbolic. Rispoli remains skeptical that the SEC will drop the appeal in a way that truly benefits Ripple, such as by failing to respond to Ripple’s appellate brief, which would give Ripple a near-certain win. Instead, he expects a joint dismissal of all appeals to avoid further scrutiny from the courts.

A key concern among XRP holders has been the court’s injunction against Ripple’s XRP institutional sales. Rispoli argues that the injunction carries little practical weight unless the SEC actively chooses to enforce it. Judge Torres herself acknowledged this, noting that any enforcement would require a separate motion. Importantly, the injunction does not apply to secondary market transactions and will not impede any potential XRP ETF approvals. Rispoli also raises a legal point that has largely gone unaddressed—whether the SEC can issue waivers to override restrictions created by the injunction. According to his research, the SEC does have that authority, though whether it will use it remains uncertain.

Ripple Chief Legal Officer Stuart Alderoty’s statement following the court ruling referred to the company’s past behavior as “historic institutional sales”—a subtle yet significant change in language. Rispoli interprets this as a strategic signal that Ripple has adjusted its business practices to comply with the legal boundaries set by Judge Torres. This language shift likely reflects an unspoken understanding between Ripple and the SEC. The company will continue institutional sales in a manner that aligns with current regulatory expectations, while the SEC agrees not to pursue further enforcement, at least under the current leadership.

Rispoli closes with a strong critique of the SEC as an institution. Drawing on years of experience litigating against government agencies, he describes a system that prioritizes self-preservation over accountability. He cites past scandals, like the SEC’s misconduct in the Debt Box case, as evidence of a deeper institutional rot. His support for crypto stems from the desire to “opt out of a crumbling system.” For him, blockchain represents more than innovation—it’s a way to build a more transparent, accountable financial future, free from the bureaucratic failings that continue to plague agencies like the SEC.

Fred Rispoli’s analysis sheds light on not just the legal minutiae of the Ripple case but also the broader institutional and political currents shaping its trajectory. While Judge Torres’s decision dealt a temporary blow to Ripple’s hopes of closing this chapter, the path to resolution appears clear. A settlement is likely, XRP remains unaffected in secondary markets, and Ripple seems poised to move forward, armed with lessons, legal clarity, and a commitment to compliance in a still-uncertain regulatory landscape.