Ripple's Legal Victory: Judge Torres Denies SEC's Motion for Dissolution and Monetary Penalty Reduction
Ruling Rejected: Judge Torres Denies Ripple's Request for Indicative Ruling in SEC Case
In a significant blow to the U.S. Securities and Exchange Commission (SEC), Judge Analisa Torres has firmly rejected the agency's request to dissolve the permanent injunction ordered against Ripple Labs and to slash the financial penalties. In a blunt order on June 26, 2025, Judge Torres flatly denied the SEC's motion, stating, "The request is DENIED."
This ruling, part of the high-profile legal battle that has captivated the attention of legal experts and the crypto community alike, is another twist in the case that traces back to December 2020 when the SEC filed a lawsuit against Ripple. The agency claimed that Ripple had illegally offered and sold XRP as an unregistered security, violating Section 5 of the Securities Act of 1933.
According to court documents, the SEC argued that Ripple's failure to register XRP offerings resulted in investors being deprived of crucial information about XRP and Ripple's business, necessitating informed investment decisions.
In July 2023, Judge Torres issued a partial summary judgment, determining that Ripple had indeed offered XRP as a security to institutional buyers without proper registration. In March 2024, the SEC sought a final resolution, asking the court to permanently enjoin Ripple from future violations and to impose a substantial monetary penalty.
However, with this week's ruling, Judge Torres has taken a decisive stance. "For the foregoing reasons, the parties' motion for an indicative ruling is DENIED," she wrote in the conclusion of her order. The order further directed the Clerk of Court to terminate the motion.
This denial represents a legal setback for the SEC; however, the broader case remains active, with key issues concerning remedies and future regulatory oversight of digital assets yet unresolved. For now, Ripple has secured another procedural win in its years-long battle with the U.S. securities regulator.
Enrichment Insights:
- Both Ripple and the SEC have jointly filed a motion under Rule 60(b)/62.1, asking the court to dissolve the prior injunction and redistribute the $125 million civil penalty held in escrow. If Judge Torres shows inclination to grant this motion, both sides will seek a limited remand from the Second Circuit to finalize a revised judgment and terminate all appeals.
- The case's resolution is crucial for XRP stakeholders and the broader crypto industry as it clarifies the regulatory status of XRP, particularly regarding whether it constitutes a security. The SEC's withdrawal of its appeal on programmatic sales has paved the way for settlement discussions.
- Settlement talks have intensified, with Ripple prepared to pay a $50 million penalty in cash. The settlement is expected by late summer 2025.
In light of Judge Torres' denial of the SEC's motion to dissolve the injunction and reduce monetary penalties, Ripple's financial battle with the SEC continues to ripple through the business and finance sectors, as the lawsuit surrounding the regulatory status of XRP remains unresolved. This decision comes as part of the ongoing legal effort to determine whether XRP constitutes a security under the Securities Act of 1933, a ruling that could significantly impact the crypto industry.
