XRP Legal Battle Continues: Judge Denies SEC and Ripple’s Joint Motion on $125M Penalty

In a significant development for the cryptocurrency industry, a federal judge has rejected a joint motion by Ripple Labs and the U.S. Securities and Exchange Commission (SEC) to settle a $125 million penalty and finalize rulings on institutional XRP sales. Despite both parties reaching an agreement, U.S. District Judge Analisa Torres denied the motion and upheld the permanent injunction on Ripple's institutional XRP sales, originally imposed in 2024. This ruling underscores the ongoing legal complexities surrounding XRP and highlights the regulatory challenges facing digital assets. The decision could have far-reaching implications for Ripple's operations and the broader cryptocurrency market, as stakeholders await further clarity on the regulatory status of XRP. As of July 2025, the case remains a focal point for crypto enthusiasts and investors, with many watching closely for potential impacts on XRP's price and adoption.

Judge Rejects SEC and Ripple's Joint Motion on XRP Sales and $125M Penalty

A federal judge has denied Ripple Labs and the U.S. Securities and Exchange Commission's joint motion to set aside a $125 million penalty and final ruling on institutional XRP sales, despite both parties reaching a settlement. U.S. District Judge Analisa Torres also refused to lift the permanent injunction on Ripple's institutional XRP sales, imposed in 2024.

The court ruled that the settlement agreement cannot reverse the injunction against Ripple's institutional sales. This marks the second failed attempt to bring legal closure to the long-running case. The SEC WOULD have retained $50 million of the penalty while returning $75 million to Ripple under the proposed settlement.

In 2023, Judge Torres ruled that XRP sold on exchanges did not violate securities laws, but institutional sales did, leading to the 2024 injunction and penalty. Both parties have appealed the decision.

Judge Torres Denies SEC-Ripple Joint Motion, Delaying $50M XRP Settlement

In a pivotal development for the cryptocurrency sector, U.S. District Judge Analisa Torres rejected a joint motion from Ripple Labs and the Securities and Exchange Commission on June 26, 2025. The denied request sought preliminary approval to reduce Ripple's potential $200 million penalty to $50 million and modify existing injunctions.

The decision maintains uncertainty around XRP's regulatory status, preserving Judge Torres' landmark 2023 ruling that distinguished between institutional sales and programmatic exchange transactions. Market observers note the denial prolongs legal limbo for one of crypto's most consequential cases.

Ripple's native token faces continued volatility as the SEC's appeal progresses. The court's refusal to provide indicative rulings suggests a protracted battle ahead, with implications for how digital assets are classified under U.S. securities law.

Ripple Launches Permissioned DEX as XRP Gains Traction in U.S. Mortgage Market

Ripple has introduced a Permissioned DEX on the XRP Ledger, enabling regulated financial institutions to trade securely while maintaining compliance. The platform allows developers to create permissioned order books for assets like XRP, stablecoins, and wrapped tokens, accessible only to listed accounts.

Yoshitaka Kitao, CEO of SBI Group, hailed the MOVE as pivotal for real-world financial applications on the XRPL. Concurrently, RippleX released Version 2.5.0 of the XRP Ledger's Core software, marking significant progress in institutional DeFi adoption.

Analyst Outlines XRP's Potential Path to $3 Amid Key Resistance Battle

XRP faces a critical juncture as market participants watch the $2.08 level for signs of bullish conviction. The third-largest cryptocurrency by market cap has retreated alongside broader altcoin weakness, but analysts suggest a 12-hour window could determine its near-term trajectory.

Egrag Crypto, a prominent XRP commentator, identifies $2.08 as the pivotal threshold. A sustained break above this level may confirm bullish momentum, potentially propelling the asset toward $2.30 and $2.65 resistance zones. Failure to hold this line risks retesting support NEAR $1.90.

The analysis hinges on time-sensitive price action: "Closes above $2.08 within the first 12 hours signal aggressive bull participation," noted Egrag. This technical framework arrives as XRP traders weigh the asset's capacity to reclaim its position as a market leader.

Court Denies Ripple and SEC Bid to Lift Injunction and Reduce Penalty

A New York judge has rejected a joint request from Ripple and the U.S. Securities and Exchange Commission to vacate an injunction on institutional XRP sales and reduce a $125 million penalty. Judge Analisa Torres dismissed the motion, citing the SEC's unchanged stance that Ripple might continue violating securities laws.

The proposed settlement would have slashed the penalty to $50 million and lifted restrictions imposed during the Gensler administration. Torres noted the parties failed to demonstrate why dissolving the injunction—issued less than a year ago—serves the public interest. The decision maintains regulatory pressure on one of crypto's highest-profile legal battles.

Kraken Challenges Ripple with New Peer-to-Peer Crypto Payment App Launch

Kraken has unveiled Krak, a peer-to-peer payment app supporting both crypto and fiat transactions, marking a strategic expansion beyond its exchange roots. The app offers zero fees, global accessibility, and deposit rewards—positioning it as a direct competitor to Ripple's institutional dominance and mainstream platforms like Venmo.

Krak supports 300+ cryptocurrencies alongside traditional currencies, with plans to introduce debit cards and yield-generating features. The move signals Kraken's ambition to democratize financial services through crypto-native solutions while laying groundwork for its anticipated IPO.