XRP News Today: Ripple Penalty Unchanged Judge Denies Motion to Reduce $125 Million Fine

On June 26, 2025, Judge Analisa Torres of the Southern District of New York delivered a significant ruling in the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). The judge denied a joint motion filed by both parties, which sought an indicative ruling to potentially reduce the $125 million penalty imposed on Ripple and modify certain restrictions on XRP sales to institutional investors. This decision maintains the initial penalty and the injunction requiring Ripple to comply with federal securities laws, effectively extending the litigation process.

Ripple had hoped to amend the penalties and reclaim funds, but the court's rejection has continued to hinder their financial and business strategies. The ruling prevents Ripple from seeking an early dismissal of the case and has led to market volatility, with XRP losing $2 billion in market value within an hour of the decision. The broader financial repercussions include restricted institutional funds and curtailed crypto business avenues for Ripple.

The court's decision also clarifies that the ongoing deliberations concern Ripple’s request for a reduced penalty and the lifting of certain restrictions on XRP’s institutional sales, not a reassessment of XRP’s status as a security. Both parties have confirmed their intention to leave the original July 2023 summary judgment untouched, which declared XRP is not a security in secondary market transactions.

Speculation has arisen about a potential $50 million settlement between Ripple and the SEC. However, this figure is based on a previous settlement agreement finalized in April 2025 and approved by the SEC in early May. That settlement had reduced Ripple’s proposed penalty from an earlier $125 million to $50 million, with both parties agreeing to the revised terms after months of negotiations. There has been no new settlement offer since then, despite ongoing community speculation online.

With both Ripple and the SEC having jointly asked the court to keep the appeals process on hold, the next major update in the case will likely come from the SEC’s side. The SEC is due to file a status report by August 15, 2025, which may provide additional clarity on the progression of the case and the court’s response to the indicative ruling request. The resolution of Ripple’s legal challenges could set important procedural precedents, particularly concerning penalties and institutional sales of crypto assets following a regulatory breach.

The ongoing case reflects the complexities of U.S. securities law in the cryptocurrency sphere and its potential impact on regulatory interpretations. Market and regulatory outcomes hinge on future court interpretations, influencing other crypto-related legal frameworks. The case remains a focal point for XRP holders and the wider crypto market, especially as regulatory scrutiny of digital assets intensifies.