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Judge Torres denied Ripple-SEC’s motion to dismiss the case and reduce the penalty.
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Institutional XRP Sales remain prohibited under the current injunction.
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SEC is required to file the next update before August 15, 2025.
On June 26, 2025 U.S. District Court Judge Analisa Torres denied a joint motion by Ripple Labs and Securities and Exchange Commission, which sought an “indicative decision” to dissolve Ripple’s permanent injunction and reduce its civil penalty. The court filing Document 989, in case 1:20-cv-10832, confirmed that the request had been denied in its entirety.
The decision stops an agreement reached between Ripple, the SEC and Ripple in May 2025. This agreement aimed to reduce Ripple’s $125 million civil penalties by 60% and end litigation with no further appeal. The deal was contingent on Judge Torres indicating that she would vacate any existing judgment in the event the parties returned to the court.
What does this mean for Ripple?
The court’s refusal means that Ripple is still barred from selling institutional XRP. The 2023 summary judgement found that Ripple’s direct XRP sale to institutional investors violated Securities Act, but it ruled that Ripple’s programmatic exchange sales were not.
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Ripple is still required to comply with the terms of the injunction. The SEC estimated that the penalty could have been as high as $1 billion. However, it was already reduced to $500,000 in 2024. The new motion sought additional relief under Rule 60(b), allowing post-judgment modifications in exceptional cases. Judge Torres ruled the parties had not met the narrow legal standard necessary to modify the judgment.
What happens next?
This ruling opens the possibility of a new appeal. Ripple had paused its appeals at the Second Circuit in order to await the court’s ruling. Both sides will now have to decide whether they want to continue litigation at the appellate or submit a settlement proposal.
Stuart Alderoty, Ripple’s Chief legal officer, said on X that Ripple will either dismiss or move forward with the appeal. However, XRP’s classification as a non-security for exchange sales will remain unchanged.
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The court ordered the SEC file a status report by August 15, 2025. Ripple can also respond or file a separate motion. If the dispute is not resolved, it could be sent back to the Second Circuit. This would extend the legal process until 2026.
