Court Denies Ripple and SEC Settlement Motion

Ripple Labs’ motion to alter penalties in its SEC lawsuit was denied by Judge Analisa Torres due to procedural errors, sustaining a $125 million fine against Ripple, headquartered in New York, on May 16, 2025.

The court ruling maintains Ripple Labs’ substantial financial penalty, reinforcing compliance protocols and affecting XRP price dynamics.

Ripple, embroiled in a legal conflict with the SEC, aimed to lower its penalty from $125 million by proposing a reduced settlement. However, Judge Torres ruled out the settlement, citing procedural concerns. Ripple and SEC must revisit the settlement process per court directives.

The decision impacts Ripple’s financial obligations and XRP’s market value, which declined by 3 to 6 percent. XRP’s legal classification remains partially unresolved, affecting investor sentiments and institutional confidence. Broader market implications on Ethereum and Bitcoin were minimal.

Historical SEC enforcement actions, including those won against Telegram and Block.one, similarly resulted in substantial penalties. The Ripple case adds to this, underscoring the regulatory complexities and the ongoing legal challenges for crypto-issued securities.

Ripple’s leading legal officer, Stuart Alderoty, emphasized existing wins, like XRP not being ruled a security in retail contexts, remaining intact. He stated:

Nothing in today’s order changes Ripple’s wins (i.e. XRP is not a security, etc). This is about procedural concerns with the dismissal of Ripple’s cross-appeal. Ripple and the SEC are fully in agreement to resolve this case and will revisit this issue with the Court, together.

The legal battle’s repercussions continue influencing XRP and could affect other crypto projects considering SEC-linked institutional offerings in the future.