In a fresh legal twist, U.S. District Judge Analisa Torres has denied the joint request from Ripple and the U.S. Securities and Exchange Commission (SEC) to vacate a prior injunction and reduce Ripple’s penalty. The parties had filed a renewed motion earlier this month, citing “exceptional circumstances” that warranted a lighter $50 million penalty and the removal of the injunction related to XRP’s institutional sales.
Public Judgment Takes Precedence
Despite their joint proposal, Judge Torres ruled that the settlement agreement cannot override the court’s original public judgment. She emphasised that the cases cited by Ripple and the SEC in their argument were not comparable, as they lacked any form of injunction or civil penalty.
She clarified that most of those referenced cases were dismissed before any judicial determination on securities law violations. In contrast, the Ripple case had already resulted in a clear judicial verdict, making it inappropriate to reverse through a motion.
Related article: Ripple CTO Ends Speculation Around “Private XRP” With a Definitive Answer
“This Court Will Not Erase Final Judgments”
Judge Torres did not hold back in her reasoning. She noted that dissolving the injunction only became necessary because both Ripple and the SEC chose to make it part of the conditions for withdrawing their appeal.
“Moreover, dissolution of the injunction as a precondition to the termination of the parties’ appeals is only necessary because the SEC and Ripple made it so,” she stated firmly.
Judge Torres emphasised that both Ripple and the SEC can drop their appeals at any time without needing the court’s permission.
Appeal Is the Only Path Forward
Judge Torres made it clear that if Ripple and the SEC still want to modify the ruling or seek relief, they must appeal to the Second Circuit. There are no shortcuts through the district court to change a final judgment once it’s been rendered.
“Neither option involves requiring this court to absolve Ripple of its obligation under the law,” she added. While acknowledging the right of both parties to reach an out-of-court agreement, Torres firmly maintained the authority of the court’s final decision.
What’s Next for Ripple and the SEC?
It remains uncertain how Ripple and the SEC will proceed following this denial. The parties had already jointly requested that the Second Circuit pause their ongoing appeals to allow for a peaceful settlement. However, Judge Torres’s refusal to support their plan puts more pressure on them to choose between continuing their appeal or accepting the current judgment as it stands.
This decision could prolong the lawsuit that has spanned several years, further complicating Ripple’s legal strategy and adding more uncertainty to the regulatory treatment of digital assets.
