Judge Analisa Torres from the Southern District of New York denied a joint request by the U.S. SEC and Ripple to lift a permanent injunction and reduce the fine.
Court's Ruling
Judge Torres stated that the SEC's past view that Ripple would continue to violate the law has not changed. "That has not changed, and neither party is arguing otherwise. Despite this, they request that the fine be reduced by 60% and the permanent injunction be lifted, citing public interest," Torres said.
Background of the Dispute
The dispute between the SEC and Ripple began in 2020 when the SEC accused Ripple of raising $1.3 billion through unregistered securities sales. In July 2023, Judge Torres ruled that "programmatic sales" of XRP to individual investors were not securities, while direct sales to institutional investors were considered as such. This resulted in a $125 million fine for Ripple.
Positions of Ripple and SEC
Despite the changing positions in the crypto space, Judge Torres emphasized that parties cannot avoid the binding force of a court's decision by mutual agreement. "In such cases, extraordinary circumstances must be shown in the public interest and in the interests of justice. This is not the case here," she added. Ripple's Legal Director Stuart Alderoty stated on social media, "The ball is now in our court." He clarified that the court provided two options: to withdraw their appeal regarding past institutional sales or to continue the appeal.
Thus, Judge Torres upheld the substantial penalty against Ripple despite arguments regarding the SEC's changing approach to crypto assets.
