Ripple Labs’ ongoing clash with the U.S. Securities and Exchange Commission (SEC) took another dramatic turn this week, as U.S. District Judge Analisa Torres denied a joint request by Ripple and the SEC to reconsider the court’s existing injunction and penalties stemming from the XRP securities case.
The decision, delivered on June 26, 2025, leaves Ripple bound by strict limitations on its institutional XRP sales and a significant financial penalty, underscoring the judiciary’s commitment to enforcing securities laws in crypto markets.
The motion, filed under ECF No. 987, sought what is known as an “indicative ruling,” a legal mechanism allowing a judge to signal whether they would be open to amending a prior judgment if formally asked by an appellate court.
The joint filing represented a rare moment of alignment between Ripple and the SEC, both of which appeared motivated to resolve lingering disputes from a case that began in December 2020.
However, Judge Torres dismissed the motion outright, stating there was no basis to suggest the prior summary judgment, issued in July 2023, should be modified.
Her order left Ripple’s legal obligations intact, shutting down hopes that the company might negotiate a reduced penalty or see an end to the permanent injunction limiting certain XRP transactions.
Ripple’s Institutional Sales at the Heart of the Dispute
The SEC’s original lawsuit accused Ripple of raising over $1.3 billion through an unregistered securities offering by selling XRP to institutional investors.
In her pivotal 2023 ruling, Judge Torres distinguished between Ripple’s institutional sales, which she found violated securities laws, and XRP’s secondary market sales on exchanges, which she declared did not constitute securities transactions.
That decision was widely hailed by XRP supporters as a partial victory, as it affirmed XRP’s non-security status for retail trades.
Yet Ripple’s legal exposure over its institutional deals has persisted. In March 2024, the SEC pushed for additional penalties, arguing that Ripple’s conduct warranted stronger enforcement to deter future violations.
While both sides later came together to seek potential relief through the indicative ruling, Judge Torres’ latest decision underscores her view that the court’s existing judgment already struck an appropriate balance.
Implications for Ripple, XRP, and the Broader Industry
The court’s refusal to ease sanctions highlights the judiciary’s increasing role in setting boundaries for crypto asset issuers, especially when their fundraising strategies resemble traditional securities offerings.
Judge Torres’s uncompromising stance sends a signal to the market that even partial regulatory victories, like XRP’s classification as a non-security in secondary markets, will not shield projects from consequences tied to institutional or private placements.
This latest setback also complicates Ripple’s efforts to position itself as a compliant player in the digital asset space, as the company prepares for rumored plans of a potential initial public offering and seeks to expand its enterprise payment solutions globally.
Industry analysts note that lingering legal constraints could weigh on Ripple’s institutional relationships, especially as traditional financial institutions demand clarity before deeper engagement with crypto firms.
Meanwhile, XRP itself has shown relative price resilience, trading steadily in the wake of the ruling.
Many investors view the reaffirmed non-security status of XRP in retail markets as more critical than Ripple’s corporate disputes, although the legal uncertainty could limit institutional adoption of Ripple’s On-Demand Liquidity solutions.
Ripple’s Legal Options Narrowing
With Judge Torres’ latest decision, Ripple faces dwindling avenues for altering the terms of its penalties through negotiation.
The company must now decide whether to challenge the court’s ruling through formal appeals or comply with the existing injunction and financial sanctions, which remain among the most severe imposed on a crypto company to date.
For now, the landmark Ripple-SEC case continues to define the regulatory landscape for U.S. crypto markets.
The outcome has set precedents likely to influence how token issuers structure future offerings and how federal regulators approach enforcement in an industry still grappling with a lack of comprehensive legislation.
