XRP Court Case Update Today: Latest Ripple vs SEC News

Court Decisions and Judicial Action Joint Motion Denied by Judge Torres Judge Analisa Torres denied on June 26, 2025, a joint motion filed by Ripple and the SEC to modify the final judgment in their long-standing case. The motion requested the judge to reduce Ripple’s $125 million civil penalty to $50 million and the permanent injunction against institutional XRP sales. Judge Torres ruled that the parties had failed to establish ”exceptional circumstances” required to alter a final judgment as stipulated in Rule 60. This decision maintains the original sanctions and reinforces the court’s commitment to procedural integrity. Background of the Motion The motion, filed on June 12, 2025, was a second attempt following an earlier application being turned down in May. The settlement would ”obviate appeals” and end the 4.5-year case, the two parties contended. Despite being in consensus, the court pointed out that final orders cannot be overturned unless there is robust public interest. Case Settlement and Resolution Status Settlement in Limbo The settlement reached—where Ripple was to remit $50 million to the SEC while retaining $75 million in escrowed funds—now hangs precariously. While the two parties had made a deal in April-May 2025, its implementation is subject to the approval of the judiciary, which Judge Torres’ ruling effectively delayed. Appeals Process Paused Until August 15 The Second Circuit Court of Appeals agreed to a joint request to hold appeals in abeyance until August 15, 2025. Ripple and the SEC are obligated to submit a status report detailing future action by the deadline. Subject to other disposition, appeals can be reinstated, prolonging the case. Financial Penalties and Remedies $125M Penalty and Injunction Upheld The original penalties remain: $125 million civil penalty (with $125M held in escrow). Permanent injunction against Ripple’s institutional XRP sales. The court’s refusal to lower the fine or suspend the injunction continues regulatory pressure on Ripple and delays market relief. Escrow Funds Locked Ripple’s monthly XRP escrow releases (e.g., 1B XRP unlocked in June 2025) continue, but the $125M tied to the fine cannot be redistributed without court approval. Appeal Proceedings and Delays Procedural Delays and Next Steps Rule 60 Motion is Denied . The denied motion asked for an ”indicative ruling” to speed up settlement. Deadline of August 15 . The Second Circuit should be filed with a joint status report by this date. Unless Judge Torres ruled by then, appeals are allowed. Remedies Briefing Discovery . The process was delayed due to ongoing disputes about remedies briefing and accounting records. Legal Tactics and Arguments Ripple’s Defensive Strategies Fair Notice Defense : Ripple alleged that the SEC did not sufficiently indicate whether XRP sales were a securities law violation. Cross-Appeal : Ripple protested against the definition of institutional sales as securities and the injunction’s validity. Rule 62.1 vs. Rule 60 : Procedural mistakes by the SEC and Ripple (filing under Rule 62.1 instead of Rule 60) led to the denial of the motion. SEC’s Position The SEC contends that every sale of XRP constituted an unregistered security offering, citing Ripple’s marketing campaigns and investor profit expectations. Industry and Community Reactions Legal Authorities Get Involved Pro-XRP lawyer Bill Morgan called the ruling a ”procedural setback” but noted the settlement agreement itself isn’t void. Crypto analyst John Squire emphasized the decision’s symbolic weight: ”Torres’ ruling prioritizes legal finality over industry convenience” Market Sentiment The crypto community was anguished at what it viewed as regulatory overreach victory in the denial. Some investors fear that prolonged ambiguity could erode institutional participation in XRP-based ETFs. Market Influence and XRP Price Action Price Volatility and Technical Outlook Following the ruling, XRP dipped with minor volatility but held strong support at $2.13. Analysts report: Robust selling pressure near $2.20. A positive settlement or ETF approval has the ability to break the consolidation. A ”head and shoulders” pattern on the 4-hour chart shows bearish momentum in case of break in support. Factor Impact on XRP Price Settlement Progress ⬆️ Bullish (if resumed) ETF Approval ⬆️ Major catalyst Regulatory Clarity ⬆️ Institutional interest Continued Litigation ⬇️ Bearish pressure Conclusion: What’s Next for Ripple and XRP? Judge Torres’ denial pushes back the XRP lawsuit timeline, upholding the $125M penalty and institution sale prohibition. Parties now have until Aug. 15 to report to the Second Circuit on settlement prospects. Without an agreement, unguaranteed appeals could push the battle into 2026. For XRP traders, the ruling indicates the weakness of regulatory progress—while spot ETF submissions and Ripple’s cross-border payment efforts hold long-term hope. The case remains an essential bellwether for United States crypto regulation and its ruling will affect anything from token classifications to ETF approvals.

Source: Coinpaper