XRP News Today: Ripple SEC Legal Battle Continues as Judge Rejects Settlement Motion

Judge Analisa Torres has rejected a joint motion filed by Ripple Labs and the Securities and Exchange Commission (SEC) seeking an early end to their legal dispute and a reduction in the civil penalty imposed on Ripple. The court's decision, documented in case 1:20-cv-10832, denies the request in its entirety, effectively halting an agreement reached in May 2025 between the two parties. This agreement aimed to reduce Ripple’s $125 million civil penalty by 60% and conclude the litigation without further appeal, contingent on Judge Torres signaling her intent to vacate the existing judgment if the parties returned to court.

The court's refusal to grant the motion means that Ripple remains prohibited from engaging in institutional XRP sales. The 2023 summary judgment had determined that Ripple’s direct XRP sales to institutional investors violated the Securities Act, although it ruled that programmatic exchange sales did not. The injunction remains in effect, and Ripple must continue to adhere to the existing terms. The penalty, initially estimated by the SEC to potentially reach $1 billion, was already reduced in 2024. The new motion sought additional relief under Rule 60(b), which permits post-judgment modifications in exceptional circumstances. However, Judge Torres ruled that the parties did not meet the stringent legal criteria required to alter the judgment.

This ruling reopens the possibility of renewed appeals. Both Ripple and the SEC had paused their appeals in the Second Circuit, awaiting the court’s decision. With the indicative ruling denied, both sides must now decide whether to resume litigation at the appellate level or submit a new settlement proposal. Ripple’s Chief Legal Officer Stuart Alderoty commented that the company will either dismiss the appeal or proceed, but emphasized that XRP’s non-security classification for exchange sales remains unchanged.

The court has directed the SEC to file a status update by August 15, 2025. Ripple may also respond or initiate a separate motion. If the dispute remains unresolved, it could return to the Second Circuit, potentially extending the legal process into 2026. This development indicates that the legal battle between Ripple and the SEC will continue, with both parties preparing for further court proceedings. The prolonged appeals process means that the legal uncertainty surrounding XRP and other cryptocurrencies will persist, which could impact investment and innovation in the industry. However, it also provides an opportunity for the industry to engage in further dialogue with regulators and policymakers to shape the future of cryptocurrency regulation.