XRP News Today: Ripple Pays $125 Million Fine, Institutional Sales Ban Remains

Ripple Labs continues to operate despite the ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) over the sale of XRP, its native cryptocurrency. The courts have not banned XRP or shut down Ripple's business operations. However, direct sales of XRP to institutions remain restricted unless they are properly registered or meet certain legal exemptions.

In a significant development, Ripple has paid a $125 million fine, which is now held in an independent escrow account. Both Ripple and the SEC had attempted to reduce the penalty to $50 million and lift the institutional sales ban, but Judge Analisa Torres rejected this request on June 26, 2025. The judge insisted that the original injunction and penalty remain in place until the appeals process is completed.

Despite these restrictions, Ripple can still sell XRP to institutions by adhering to the U.S. Securities Act of 1933. This includes seeking exemptions such as Rule 506(b), which allows sales to unlimited accredited investors and up to 35 non-accredited ones without advertisements, or Rule 506(c), which permits public promotion but requires verification of accredited investors. In both cases, Ripple must file a Form D with the SEC within 15 days of any sale.

The legal battle has not resulted in the shutdown of Ripple or a ban on XRP. The company continues to operate, selling XRP on open markets and advocating for better legal terms. This situation is more about shaping the legal framework for cryptocurrencies rather than halting the project. For investors and institutions with long-term goals, the business continues as usual.

Judge Torres' denial of the joint motion to reduce the fine and lift the institutional sales ban has added complexity to the case. The appeal process is still ongoing, and the legal status of XRP remains unchanged. The debate around XRP's centralization has intensified, with prominent figures in the community arguing that XRP is decentralized and not controlled by Ripple.

The outcome of the lawsuit will likely have significant implications for the future of XRP and the broader cryptocurrency market. The legal battle has kept the community on edge, as the resolution could shape the regulatory landscape for digital assets.