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Ripple’s long-standing legal battle with the SEC continues. A US District Court in Manhattan refused to lower the $125 million penalty imposed on Ripple Labs. The decision came less than two weeks after both Ripple and the SEC jointly asked the court to cut the penalty to $50 million.
They also wanted the court to remove an earlier injunction. This injunction restricted Ripple from selling XRP to institutional investors. The original lawsuit argued that these XRP sales were unregistered securities offerings.
Judge Analisa Torres rejected the request. She ruled that the penalty and injunction remain valid. Torres said the law hasn't changed and the parties failed to prove otherwise.
Judge Torres issued a five-page order. She said the SEC made a ‘compelling case’ over four years. The court found that Ripple sold XRP as an unregistered security to institutions. Programmatic sales were not illegal, but institutional sales were.
Ripple and the SEC argued that reducing the penalty served the public interest. Torres disagreed. She emphasized that final judgments are binding. Courts cannot change them based only on the agreement of the parties involved.
The judge clarified that Ripple and the SEC must go through the proper appeals process. They cannot bypass it by filing a joint request to alter a final ruling.
Ripple may continue its appeal. Although XRP’s legal status as ‘not a security’ has not changed. Stuart Alderoty, Ripple’s Chief Legal Officer, commented on the case, he said, “The ball is back in our court.” He further clarified the two options the SEC has given Ripple, in a post on X (formerly Twitter):
A Ripple spokesperson declined to comment. The company referred to Alderoty’s social media statement.
Although the SEC has softened its stance under President Trump, the ruling in Ripple’s case holds firm. The lawsuit began under former SEC Chair Jay Clayton, a Trump nominee. Gary Gensler later led the SEC as it continued its enforcement against Ripple.
Torres noted that the SEC has dropped other cases recently. However, Ripple’s case is unique because the court had already confirmed violations of securities laws.
The ruling shows that past SEC actions could have lasting consequences. Policy changes cannot undo confirmed legal violations.
XRP price dipped 416% on June 27, it is the biggest fall of today, among the world’s top ten cryptocurrencies. It is now trading at $ 2.09. The investor sentiment has grown cautious after rejection of the settlement plea by SEC.
The XRP price chart today by mid-afternoon on June 27, 2025 shows significant losses:
Judge Torres stated that Ripple and the SEC could end litigation now if they agree to withdraw appeals. Until then, the legal process will continue. Investors should monitor the upcoming legal developments closely before making any financial decisions.
Also Read: Crypto Prices Today: Bitcoin Price Holds at $107K, XRP Slides 3.99% on Court Ruling
