Breaking: Court Denies SEC and Ripple Request to Cut $125M Fine

Ripple Can’t Shake the Bill Just Yet

Ripple's effort to score a discount on its $125 million SEC penalty has hit a wall. On Thursday, Judge Analisa Torres of the U.S. District Court for the Southern District of New York rejected a joint request by Ripple and the Securities and Exchange Commission (SEC) to cut the fine by 60% and overturn a prior ruling that labeled XRP’s institutional sales as securities transactions.

The motion asked for what's known as an "indicative ruling," which would allow a lower court to modify its judgment even as the case sits in appellate limbo. But Judge Torres didn’t budge, arguing the original findings still stand.

In her filing, Torres emphasized that Ripple’s prior conduct showed a “willingness to push boundaries” and created a clear “likelihood that it will… cross the line.” In her words:

She added that reducing the fine or undoing the ruling outside the proper appeals process would violate congressional rules for federal court review, effectively warning both parties to follow the legal playbook.

SEC, Ripple Settlement Hits a Snag

Despite this roadblock, both Ripple and the SEC have moved toward closing the case entirely. After years of litigation, they’ve agreed to a full wind-down — but hoped to secure court approval to return $75 million of the $125 million penalty held in escrow.

Under the proposed settlement, the SEC would receive just $50 million — a major discount Ripple had hoped to lock in with judicial approval. But Torres’ refusal to sign off means that the full $125 million penalty could still be enforced, unless reversed through formal appeals.

CEO Garlinghouse Claims “Victory” as Appeal Is Dropped

Back in March, Ripple CEO Brad Garlinghouse took a victory lap when the SEC dropped its appeal against Ripple’s partial courtroom win from 2023 — the same ruling that found XRP sales to retail investors did not constitute securities.

Calling the move a “resounding victory,” Garlinghouse said it showed the agency was “retreating” and losing its grip on the crypto industry. The partial victory was widely celebrated by the crypto community, which saw it as a turning point in the SEC’s aggressive enforcement campaign.

But Judge Torres’ latest decision reminds everyone that Ripple hasn’t emerged unscathed. The initial fine still stands, and its institutional XRP sales remain classified as securities violations — a ruling with far-reaching consequences for token issuers.

The Fight May Be Ending, But the Message Is Clear

Even though the case is in its final stages, the court has made it clear that penalties and compliance standards won't be casually renegotiated — especially not outside the proper legal process.

Judge Torres’ decision reinforces the idea that shifts in regulatory tone or public sentiment can’t override standing legal findings. Ripple may be done with the courtroom drama, but its legacy as a landmark case in crypto regulation is far from over.