- Judge Torres denied Ripple and SEC’s joint motion to reduce the fine and lift an injunction.
- Legal experts agree the SEC case now focuses solely on Ripple, not XRP.
- XRP remains legally classified as a non-security.
- Ripple has restructured its institutional XRP sales to comply with federal laws.
- The next steps depend on whether Ripple and the SEC proceed with appeals or withdraw.
In a major legal turn, community experts and Ripple’s legal team now confirm that the ongoing SEC lawsuit is entirely focused on Ripple Labs and no longer targets XRP as a digital asset.
Judge Torres Denies Motion to Reduce Penalty
U.S. District Judge Analisa Torres recently denied the joint motion by XRP and the SEC to reduce Ripple’s penalty from $125 million to $50 million and to lift the permanent injunction related to institutional XRP sales. She clarified that the settlement agreement does not override the court’s final ruling and reaffirmed that the injunction can only be lifted as part of ending the appeal—something both parties can still choose to do or pursue further.
SEC Case Shifts Focus from XRP to Ripple
Following this ruling, prominent community member Vet asserted that the case is now strictly about Ripple as a company, with no further implications for XRP itself. Ripple Chief Legal Officer, Stuart Alderoty, echoed this sentiment, emphasizing that the judge left the decision to continue or end the appeal in the hands of Ripple and the SEC.
XRP’s Legal Clarity Remains Intact
It’s worth recalling that in July 2023, Judge Torres clearly ruled that XRP is not a security, a decision the SEC chose not to challenge. This landmark ruling gave XRP legal clarity, and that status remains unaffected by the ongoing corporate aspects of the case.
Since then, the SEC has agreed to drop its appeal concerning Ripple’s programmatic XRP sales. Ripple, however, requested modifications to the penalty and injunction—which the court has now rejected.
Ripple Restructures XRP Sales Amid Broader Crypto Battle
Crypto influencer Zach Rector highlighted three key facts following the court’s latest action:
- XRP remains a non-security.
- The SEC’s broader crackdown on crypto is losing steam.
- Ripple has adjusted its institutional XRP sales to comply with federal securities laws.
With the legal focus narrowed down to Ripple’s internal conduct, the outcome of the case may have little effect on the broader crypto market. However, it remains to be seen whether both parties will pursue further appeals or allow the final verdict to stand.