XRP News Today: Ripple Faces Critical Decision After Court Denies Penalty Reduction

Ripple, a prominent player in the cryptocurrency industry, is facing a critical juncture in its legal battle with the Securities and Exchange Commission (SEC). The case, which has been ongoing for several years, has seen multiple developments that have shaped the trajectory of the dispute. Recently, a widely followed software engineer, Vincent Van Code, has offered insights into what could be the final chapter of this legal saga.

In May, U.S. District Judge Analisa Torres denied a joint request by Ripple and the SEC to revise the remedies portion of the case. The parties had proposed reducing Ripple’s penalty from $125 million to $50 million and lifting the permanent injunction on future institutional XRP sales. This denial was a significant setback for Ripple, as it marked the second failed attempt to dissolve the injunction. The court’s decision reinforced the original ruling, which found Ripple’s institutional sales of XRP to be unregistered securities offerings.

Van Code believes that Ripple is now likely to dismiss its appeal following these setbacks. He urged Ripple to stop prolonging the battle and to strategically secure regulatory clarity. In his commentary shared on X, Van Code wrote, “Just pay it, get SEC to sign a bunch of XRP sale exemptions and move on.” He added that lingering too long could allow competitors to catch Ripple off guard. Van Code’s message was as much a legal analysis as it was a business warning: the time for resolution is now.

The idea is not to concede defeat but to strategically secure regulatory clarity. A swift conclusion, accompanied by formal exemptions from the SEC for future XRP sales, would allow Ripple to operate without fear of regulatory reversals. It would also send a strong signal to investors, partners, and developers that Ripple is fully back in business.

Despite the setbacks, Ripple’s legal team remains publicly optimistic. Chief Legal Officer Stuart Alderoty reportedly assured the community that the case “doesn’t change anything” in terms of the company’s business operations. This confidence likely stems from the 2023 Torres ruling, which clearly stated that XRP is not a security when sold on exchanges or in retail transactions, an outcome that still stands.

What remains is a narrowed battle over past institutional sales. With much of the legal uncertainty behind it, Ripple appears increasingly focused on expansion. The company has launched its RLUSD stablecoin, integrated with Wormhole for cross-chain functionality, and is preparing to roll out the XRPL EVM sidechain, moves that signal a clear pivot toward building.

As Vincent Van Code rightly points out, Ripple is at a turning point. Dismissing the appeal and finalizing a penalty may seem like a tactical retreat, but in reality, it could be the final step toward full regulatory certainty. The broader crypto landscape is rapidly evolving, and Ripple can’t afford to be stuck in litigation limbo. What comes next could be Ripple’s most powerful move yet—not in the courtroom, but in the market.