U.S. Judge Rejects SEC and Ripple’s Settlement Proposal in XRP Lawsuit
On Thursday, June 26, 2025, Reuters reported that a federal judge in Manhattan has rejected a joint motion from Ripple Labs and the U.S. Securities and Exchange Commission (SEC) to approve a reduced fine aimed at settling a civil lawsuit related to unregistered securities sales.
U.S. District Judge Analisa Torres criticized both parties for suggesting that their earlier settlement from March would exempt Ripple from adhering to her permanent injunction against violating securities laws.
The lawsuit revolves around the sales of XRP, a cryptocurrency that Ripple issues. In a July 2023 ruling, Judge Torres determined that while XRP transactions on public exchanges do not classify as securities, $728 million in XRP sold to institutional investors should have complied with regulatory requirements.
Both Ripple and the SEC have since appealed this decision but expressed a willingness to settle if the judge would retract her injunction and lower the imposed civil penalty from $125 million to $50 million.
Despite the SEC’s recent easing of oversight on cryptocurrencies, Judge Torres stated that the parties did not demonstrate any exceptional circumstances that would justify altering the court’s prior rulings, emphasizing the necessity of the injunction and civil penalty to prevent future violations. She noted that the parties cannot simply agree to bypass a court’s final judgment concerning violations of federal law.
Judge Torres also indicated that the SEC and Ripple have the option to withdraw their appeals or challenge her injunction. Currently,
XRP ranks as the fourth-largest cryptocurrency by market value, following Bitcoin, Ethereum, and Tether, according to CoinMarketCap.
Source: Reuters
