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- Judge Torres denies Ripple-SEC deal aimed at cutting $125M penalty and ending injunction.
- XRP institutional sales ban remains in place as court rejects post-judgment relief motion.
- Ripple faces extended legal uncertainty as appeals may resume following ruling.
A U.S. federal judge has rejected a major deal between Ripple Labs and the Securities and Exchange Commission. Judge Analisa Torres denied their joint request to dissolve Ripple’s injunction and reduce its $125 million civil penalty.
The move was founded on rule 60 (b), a provision of the law enabling post-judgment relief in restricted circumstances. In May 2025, Ripple and the SEC consented to apply to the court for an “indicative ruling.” This would have paved the way to set aside the current ruling and execute the provisions of their fresh ruling.
But Judge Torres found that the parties would not pass the strict test of such remedy. In a filing with the court that was logged as Document 989 in the case 1:20-cv-10832, she was categorical that the whole motion was denied. This ruling implies that the injunction to Ripple that stops it from institutionally selling XRP stays.
The deal reached was to reduce Ripple’s penalty by 60 percent to $125 million. That penalty had already been halved in 2024 compared to the initial amount estimated by the SEC, which was close to 1 billion dollars. However, as the motion was blocked, Ripple will be left to hold the whole amount, and the restrictions on the sales will persist.
The 2023 summary judgment held that Ripple had broken federal securities laws in its direct XRP sales to institutional buyers. Although the court established that exchange sales of XRP were not encompassed in the sale of securities, the same legal situation was treated differently in terms of institutional sales.
Court’s Decision Blocks Ripple’s Path to Relief and Keeps Restrictions Intact
After this decision, Ripple and the SEC are likely to reconsider their approach in the case. Both parties had stayed the seasoning of the Second Circuit pending the ruling of Judge Torres to the motion.
Stuart Alderoty, Ripple’s Chief Legal Officer, said on X that the firm is now deciding whether to appeal or pursue any other legal course of action. He repeated that the exchanges-based sales of XRP do not change its status as of now in relation to its classification despite the failure when it comes to institutional transactions.
The court directed the SEC to submit a status report by August 15, 2025, while Ripple may also respond. Ripple can either file a separate motion or provide its own update to the court before the given deadline.
This latest ruling leaves Ripple under the original terms of the injunction and significantly blocks the agreed penalty reduction, delaying any resolution of the case.
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