Judge Dismisses Ripple and SEC’s Plea to Reduce $125M Fine
A U.S. federal judge has dismissed the combined request of the U.S. Securities and Exchange Commission (SEC) and Ripple Labs to reduce a $125 million civil fine in the XRP case. Judge Analisa Torres ruled that Ripple needed to comply with federal securities laws regardless of any regulatory policy change by the SEC.
XRP Sales Remain Considered Securities
The ruling, issued on June 20 in New York’s Southern District Court, denies the parties’ motion for an indicative ruling — a lower-court tool for modifying a ruling in the process of an appeal. Ripple and the SEC had submitted in common to cut the $125 million penalty by 60% and reserve a permanent injunction on institutional XRP sales.
Judge Torres explained that Ripple’s institutional investor sales of XRP remain securities transactions under federal law. She upheld her earlier ruling and stated:
“None of this has changed — and the parties hardly pretend that it has.”
Appeal Process Must Be Followed
Torres criticized the action to reverse court decisions outside of the formal appeals process. She reaffirmed that any penalty or injunction adjustment must go through the congressionally mandated appeals process, not directly via a motion by the lower court.
She also cited Ripple’s behavior that “evince a likelihood” the firm would cross legal lines again, justifying the initial penalty and injunction.
Ripple-SEC Lawsuit Nears End
Although the judge dismissed the joint motion, the case itself is set to be settled. SEC dropped its appeal in March, prompting Ripple CEO Brad Garlinghouse to declare victory for the firm as well as the entire cryptocurrency community.
In part of settling the case, the SEC and Ripple had proposed releasing the $125 million held in escrow. Under the terms they proposed, the SEC would receive $50 million — a reduced penalty — while $75 million would return to Ripple subject to judicial approval.
Legal Watch Continues
The XRP community, and the rest of the cryptosphere, remain in the dark about the case. Despite progress towards closure, the judge’s ruling reveals that obeying securities laws is not up for debate — even as regulatory policies evolve.
