XRP Legal Battle Intensifies as Judge Upholds $125M Penalty and Securities Classification

In a significant development for Ripple Labs and the XRP community, a federal judge has denied a joint request by Ripple and the U.S. Securities and Exchange Commission (SEC) to revisit a prior ruling in their long-standing legal dispute. Judge Analisa Torres of the Southern District of New York upheld the $125 million civil penalty against Ripple and maintained the classification of XRP institutional sales as securities offerings. This decision underscores the ongoing regulatory challenges facing XRP and could have far-reaching implications for its market performance and adoption. The ruling highlights the SEC's firm stance on cryptocurrency regulations and may influence future legal proceedings involving digital assets. As of June 2025, the XRP community remains vigilant, awaiting further developments in this high-profile case.

Judge Rejects Ripple and SEC Deal to Reduce $125M XRP Penalty

A federal judge has denied a joint request by Ripple Labs and the U.S. Securities and Exchange Commission to revisit a prior ruling in their long-running legal battle. The court upheld the $125 million civil penalty against Ripple and maintained the classification of XRP institutional sales as securities offerings.

Judge Analisa Torres of the Southern District of New York emphasized that Ripple's conduct demonstrated a pattern of testing legal boundaries, warranting both the financial penalty and an injunction. The June 26 ruling reinforces the application of traditional securities laws to cryptocurrency transactions, dealing a setback to Ripple's defense strategy.

The decision comes nearly two years after Torres's landmark summary judgment that found XRP was not inherently a security, while maintaining that institutional sales violated registration requirements. Market observers note the ruling preserves regulatory uncertainty around digital assets even as the SEC pursues similar cases against other crypto firms.

XRP Price Retreats Amid Ongoing SEC Legal Battle

XRP's price tumbled back to $2 as Ripple Labs' protracted legal clash with the U.S. Securities and Exchange Commission took another twist. Judge Analisa Torres rejected a joint motion that WOULD have paved the way for settlement discussions, dealing a blow to the cryptocurrency's recovery momentum.

The ruling underscores unresolved procedural hurdles despite the SEC dropping its appeal. "Private agreements cannot override judicial determinations," Torres asserted, maintaining court oversight of the landmark case. Ripple's legal team now faces a strategic crossroads - either abandon appeals regarding institutional sales or press forward with litigation.

Market reaction was immediate, with XRP failing to breach the critical $2.23 resistance level. The token's classification as a non-security remains unaffected, according to Ripple's Chief Legal Officer Stuart Alderoty, who characterized the development as returning control to the company.

Ripple And SEC’s Lawsuit Hits Final Period as Judge Rejects Proposal for Settlement

Judge Analisa Torres has denied a joint proposal from Ripple and the SEC to reduce the company's penalty to $50 million and eliminate a permanent injunction. The judge condemned the attempt, viewing it as an effort to overturn a final court ruling through private settlement.

Ripple's Chief Legal Officer, Stuart Alderoty, asserted the company remains on solid legal ground. He outlined two paths forward: dismissing the appeal challenging the historic institutional trades ruling or proceeding with the appeal. Regardless of the choice, Alderoty emphasized that XRP's status as a non-security remains unchanged.

John Deaton, Ripple's crypto attorney, criticized the SEC for citing incorrect legal rulings in its arguments. The case now enters its final phase, with significant implications for XRP and the broader cryptocurrency regulatory landscape.

XRP Drops 5% Amid $497 Million Whale Transfers Despite Improved Market Sentiment

XRP fell 5.3% to $2.08 despite $497 million in whale activity, including a $439 million transfer by Ripple to unknown wallets. The token failed to reclaim $2.14 resistance as market participants interpreted large movements as potential distribution signals.

Technical analysts highlight a descending channel pattern, with expectations for a decisive breakout or breakdown between July and September. The selling pressure emerged despite broader market relief from reported Middle East ceasefire progress.

XRP Price Drops 4% After Judge Rejects Ripple-SEC Settlement Proposal

XRP fell to $2.10 as US District Judge Analisa Torres blocked a proposed settlement that would have reduced Ripple's $125 million penalty and lifted an injunction on institutional XRP sales. The altcoin is now down 3% weekly and 9% monthly, though it retains a 347% annual gain.

Judge Torres ruled that neither party could override congressional law through private agreement, leaving Ripple bound by the original penalties. Market sentiment appears to view the maintained injunction on institutional sales as particularly damaging to XRP's liquidity.

Ripple maintains the ruling doesn't significantly weaken its position. "The fundamentals haven't changed," a company spokesperson noted, emphasizing ongoing enterprise adoption. The court's decision underscores regulatory uncertainty lingering over crypto assets despite XRP's partial legal victory last year.

Ripple’s Compliance Challenge: Legal Uncertainty Clouds XRP Institutional Sales

Ripple faces mounting regulatory pressure as Judge Analisa Torres rejected a proposed $50 million settlement with the SEC, maintaining restrictions on institutional XRP sales. The decision underscores the tension between private settlements and public enforcement of securities laws, leaving Ripple's compliance strategy in limbo.

While retail trading continues unaffected, the injunction creates operational hurdles for Ripple's institutional distribution channels. Legal experts suggest the company is likely restructuring its sales approach with new compliance safeguards, though the path forward remains uncertain after four years of litigation.