- Judge Torres rejected Ripple–SEC motion to end the case early and reduce the penalty.
- Institutional XRP sales remain barred under current injunction.
- SEC must file the next update by August 15, 2025.
On June 26, 2025, U.S. District Judge Analisa Torres rejected a joint motion from Ripple Labs and the Securities and Exchange Commission (SEC) that sought an “indicative ruling” to dissolve Ripple’s permanent injunction and cut its civil penalty. The court filing, Document 989 in case 1:20-cv-10832, confirmed that the request was denied in full.
The decision halts an agreement reached in May 2025 between Ripple and the SEC, which aimed to reduce Ripple’s $125 million civil penalty by 60% and end litigation without further appeal. The deal depended on Judge Torres signaling she would vacate the existing judgment if the parties returned to court.
What Does This Mean for Ripple?
With the court’s refusal, Ripple remains barred from institutional XRP sales. The 2023 summary judgment found that Ripple’s direct XRP sales to institutional investors violated the Securities Act, though it ruled that programmatic exchange sales did not.
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The injunction remains active, and Ripple must still comply with the existing terms. The penalty, which the SEC originally estimated could have reached $1 billion, was already reduced in 2024. But the new motion sought further relief under Rule 60(b), which allows post-judgment changes in exceptional cases. Judge Torres ruled that the parties failed to meet the narrow legal standard required to modify the judgment.
What Happens Next?
This ruling reopens the possibility of renewed appeals. 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 on X that the company will either dismiss the appeal or move forward, but that XRP’s non-security classification for exchange sales remains unchanged.
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The court directed the SEC to file a status update by August 15, 2025. Ripple may also respond or initiate a separate motion. If unresolved, the dispute could return to the Second Circuit and extend the legal process into 2026.
