XRP News Today: Judge Rejects SEC-Ripple Motion to Reduce $125M Penalty

A US judge has rejected a joint motion filed by the U.S. Securities and Exchange Commission (SEC) and the payments firm Ripple, which aimed to take steps toward resolving their ongoing legal dispute over XRP. The motion, submitted earlier this month, sought an “indicative ruling” from District Judge Analisa Torres to vacate the previously assigned $125 million civil penalty and reduce it to $50 million.

Judge Torres, however, found that both parties had failed to meet the necessary criteria to vacate the injunction and significantly reduce the civil penalty. She stated that relief from judgment under Rule 60 is only granted in cases of exceptional circumstances, which the parties had not demonstrated. The judge noted that the request did not even mention the rule, making it procedurally improper.

The legal battle between the SEC and Ripple began in late 2020 when the SEC sued the San Francisco-based firm for allegedly selling XRP as an unregistered security. In 2023, Judge Torres ruled that Ripple’s automated, open-market sales of XRP did not constitute security offerings, contrary to the SEC’s allegations. However, she sided with the SEC’s claim that Ripple’s direct sales of XRP to institutional buyers were securities offerings.

Last August, Judge Torres imposed a $125 million civil penalty on Ripple. Both the firm and the SEC appealed this amount, leading to the recent joint motion. The judge’s denial of this motion means that the legal battle between the SEC and Ripple over XRP is far from over, and the parties will need to continue their legal proceedings to resolve the dispute.