Michaela
The United States District Court for the Southern District of New York has rejected a joint request by the U.S. Securities and Exchange Commission (SEC) and Ripple Labs Inc. to revisit a key ruling in their ongoing legal battle. The court denied their motion to reduce Ripple’s $125 million civil penalty and to overturn the classification of XRP institutional sales as securities under Section 5 of the Securities Act.
In a filing dated June 26, Judge Analisa Torres reaffirmed that the court would not revisit its earlier decisions, including the $125 million penalty imposed on Ripple. Torres emphasized that the rulings align with federal securities laws enacted by Congress, signaling a firm stance on the application of existing legal standards to the case.
Judge Torres pointed out that the court granted in part the SEC’s request for an injunction and a civil penalty due to the fact that the court found that “Ripple’s willingness to push the boundaries of the [Summary Judgement] Order” evinces a likelihood that it will eventually if it has not already, cross the line.
As Judge Torres put it, “Ripple’s willingness to push the boundaries of the [Summary Judgement] Order” suggests the company is likely to overstep those limits if it hasn’t done so already.
“Nevertheless, they now claim that it is in the public interest to cut the Civil Penalty by sixty percent and vacate the permanent injunction entered less than a year ago,” Judge Torres added.
Additionally, Judge Torres clarified that the only way for the parties to seek a reduction of the penalty and challenge the lower court’s initial rulings is through the appeals process established by Congress, rather than by requesting the lower court to overturn its decisions directly.
The online community has responded with mixed reactions to the development. Sasha Hodder, founder of Hodder Law Firm, which specializes in legal compliance for digital asset companies, shared her perspective on the denial of the joint request in a post on X.
“Ripple lost again,” Hodder wrote. “After nearly 6 years, the court sees through Ripple’s scam. This judge isn’t falling for it,” she added.
Others, however, view this development as largely procedural, with some suggesting it will have little impact and others questioning the duration of the ongoing litigation.
Following Judge Torres’ ruling, XRP—the native token of Ripple—experienced a modest decline. However, according to CoinMarketCap data at the time of writing, XRP has fallen 4.41% over the past 24 hours and is currently valued at $2.09.
Read More
- Dubai Approves Ripple’s RLUSD for Real Estate and Crypto Services
- Circle Weighs $5B Sale to Coinbase or Ripple Amid IPO Uncertainty
- Ripple Settlement with SEC Moves Forward, But Commissioner Sounds Alarm
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
