A major development has emerged in the long-standing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). On June 26, 2025, a federal judge denied a joint motion by both parties to lift an existing injunction and reduce Ripple’s civil penalty.
Request to Vacate Injunction Denied
Judge Analisa Torres, presiding over the case in the U.S. District Court for the Southern District of New York, ruled that there was no legal basis to dissolve the existing injunction placed on Ripple less than a year ago.
“None of this has changed—and the parties hardly pretend that it has,” Judge Torres stated, emphasizing that prior violations by Ripple remain unresolved in the eyes of the court.
Ripple and the SEC had asked the court to reduce the civil penalty from $125 million to $75 million, and allow Ripple to retain $25 million, citing shifting enforcement policies under the current SEC leadership.
Background: Years-Long Legal Fight
The legal conflict began in 2020, when the SEC accused Ripple of raising $1.3 billion through the unregistered sale of XRP tokens. In a landmark ruling last year, Judge Torres found that Ripple’s programmatic XRP sales did not violate securities laws due to a blind bid process. However, direct sales to institutional investors were deemed securities offerings.
This distinction led to the original $125 million penalty against Ripple.
Although SEC Chair Gary Gensler exited office earlier this year, prompting the agency to shift its enforcement posture, Judge Torres reaffirmed that settlements or policy changes cannot override final court judgments.
Ripple, SEC Face Next Steps
“The parties do not have the authority to agree not to be bound by a court’s final judgment,” Judge Torres wrote, underscoring the need for exceptional circumstances to justify altering a judicial order.
Ripple and the SEC now have limited options: they can either withdraw their request or file an appeal, as noted by the judge.
Outlook: No Easy Exit for Ripple
This latest decision marks another pivotal moment in the high-stakes SEC vs. Ripple case, reinforcing the importance of judicial oversight and public interest in crypto enforcement matters. Whether an appeal will follow remains to be seen.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.