In a significant development in the ongoing Ripple Labs and U.S. Securities and Exchange Commission (SEC) legal battle, U.S. District Judge Analisa Torres has denied a joint motion from both parties seeking to prematurely end the case and modify the penalties involved. The motion, filed in 2025, requested the court to dissolve a permanent injunction that restricts Ripple’s institutional XRP sales and to reduce the $125 million civil penalty imposed on Ripple to $50 million. However, Judge Torres ruled against the request, citing procedural shortcomings and the absence of compelling reasons to alter the court’s prior decisions.
The judge’s order emphasized the necessity of adhering to established legal standards, particularly Rule 60(b), which governs modifications of final judgments. The court found that Ripple and the SEC failed to demonstrate the extraordinary circumstances required to justify reopening or changing the judgment. Furthermore, the motion did not adequately explain why such changes would serve the public interest, especially given the court’s earlier findings that Ripple’s institutional sales of XRP violated securities laws, while programmatic retail sales did not.
This ruling effectively maintains the status quo, keeping in place the injunction and the full penalty amount, and signals that the lawsuit will proceed through the normal legal process rather than through an expedited settlement. The case, which began in 2020 with the SEC accusing Ripple of conducting unregistered securities sales through XRP, remains unresolved as appeals continue. The denial of the joint request marks a setback for both Ripple and the SEC’s efforts to conclude the dispute swiftly and with reduced penalties.
Judge Torres’s decision underscores the court’s commitment to procedural rigor and finality in legal judgments, reinforcing that any modifications to such rulings must meet stringent criteria. The ongoing litigation continues to be closely watched as a landmark case in cryptocurrency regulation and enforcement.
