The federal court for the Southern District of New York denied the joint motion from Ripple Labs and the U.S. Securities and Exchange Commission (SEC) to reduce the $125 million fine and lift the permanent ban on the sale of the XRP token to institutional investors.
This is reported by Business • Media
The Court Upheld the Fine and Restrictions on Ripple
Judge Analisa Torres explained that the parties did not provide sufficient grounds for reconsideration of the previously issued ruling regarding Ripple. This refers to the decision from August 2024, which mandated the company to pay a civil penalty for violating the Securities Act in connection with the initial offerings of XRP. Despite the SEC’s later withdrawal of its appeal, the parties attempted to seek a reduction of the fine and the lifting of the ban on institutional sales of the tokens; however, the court rejected these arguments, citing the need to adhere to the appeals process.
The judge emphasized that the applicants did not present compelling reasons to alter the previously issued ruling.
The court stressed that Ripple continues to demonstrate a willingness to violate legal norms, which does not support the mitigation of sanctions. Furthermore, the judge noted that public interest is not a basis for overturning an existing ruling without exceptional circumstances. The parties were offered the option to complete the process through an appeals procedure or initiate a new proceeding.
Prospects for Ripple’s Further Actions
In March 2025, the SEC officially withdrew its complaint, and Ripple abandoned its counterclaims. Subsequently, the parties submitted a joint motion to unlock funds from the escrow account, anticipating a payment of $50 million to the SEC and a return of $75 million to the company. However, this plan still requires judicial approval.
Ripple’s CEO Brad Garlinghouse previously described the withdrawal of the appeal as a “resounding victory” for the company and expressed hope for a swift conclusion to the lengthy legal process. At the same time, the court’s decision from June 20, 2025, indicates that even with concessions from the regulator, it is impossible to lift imposed sanctions outside the appeals process.
Thus, Ripple is currently obligated to pay a significant fine, and the issue of selling XRP to institutional investors remains unresolved. The company’s legal department has yet to comment on the next course of action.
It was previously reported that Ripple would cease publishing quarterly reports on XRP due to pressure from the SEC.