Judge Analisa Torres has rejected a $50 million settlement proposed by Ripple Labs and the SEC, upholding a permanent injunction that prevents Ripple from selling XRP to institutional investors. The judge stated that neither party demonstrated the “exceptional circumstances” needed to overturn her previous ruling, emphasizing that public interest in enforcing securities laws outweighs private agreements.
This decision keeps business restrictions on Ripple despite both sides agreeing to a reduced penalty from the original $125 million. While institutional XRP sales remain prohibited, retail trading is unaffected. The lawsuit began in December 2020 over alleged unregistered XRP sales, with Torres ruling in July 2023 that institutional sales were securities violations, but retail sales were not.
The May 2025 settlement attempt, which sought to reduce the penalty and lift the injunction, was deemed “procedurally improper” by Judge Torres. This stands in contrast to other SEC crypto cases that have seen rapid resolutions in 2025 under a shifting regulatory approach, with the agency dropping actions against several other crypto firms. Ripple’s legal situation remains unique as it faces a binding judgment affirming its violations, potentially hindering its strategic partnerships with financial institutions.
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