The long-running legal battle between the SEC and Ripple has taken a new turn, as the court denied a request to reduce Ripple's penalty.
Court's Ruling on the Settlement
On June 26, U.S. District Judge Analisa Torres rejected a joint request from Ripple and the SEC to change the final judgment. This decision negates a proposed deal that could have reduced Ripple's fine from $125 million to $50 million and removed the permanent injunction.
Reason for Denial
Judge Torres noted that such requests cannot override a final court judgment unless 'exceptional circumstances' are clearly demonstrated. In her ruling, she emphasized that courts are not bound to accept private settlements when public interest is at stake.
Impact on Ripple and XRP
The court's decision ensures that Ripple's institutional XRP sales remain under legal scrutiny. The SEC previously argued that Ripple violated securities laws by failing to register XRP before offering it to institutional buyers.
The judge's denial reinforces the legal pressure on Ripple regarding its institutional XRP sales and paves the way for ongoing appeals from both sides.
