Judge Analisa Torres has denied the joint motion filed by Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC) seeking an indicative ruling to modify a previous final judgment.
This ruling halts their efforts to reduce Ripple’s $125 million civil penalty to $50 million and dissolve the injunction against the company’s XRP sales.
According to court documents filed on May 15, 2025, the motion was deemed “procedurally improper,” even if jurisdiction had been restored to the district court. Judge Torres emphasized that the motion failed to comply with the legal framework under Federal Rule of Civil Procedure 62.1.
The XRP community quickly reacted to the development. Legal analyst James K. Filan shared the court’s order, noting that the judge clearly stated, “If jurisdiction were restored to this Court, the Court would deny the parties’ motion as procedurally improper.”
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Torres Raises the Bar on Ending Ripple Case
According to journalist Eleanor Terrett, Judge Torres’s stance forces both parties to do more than agree to settle. She has clarified that the five-year litigation, primarily driven by the SEC’s allegations, cannot be undone without a compelling, rule-based justification.
Attorney John Deaton has highlighted that Torres is holding firm, ensuring the process is treated with the seriousness warranted by years of federal litigation.
In 2020, the SEC filed a lawsuit against Ripple, claiming they were conducting an unregistered sale of securities. After a few intermediate decisions, Ripple achieved major success when the Court ruled that XRP was not a security in some specific cases.
As a result of the SEC’s actions, Ripple was given fines and restrictions on the sales of its coin, which led to additional lawsuits.
On May 8, 2025, Ripple and the SEC submitted a proposed agreement to revise the civil penalty, framing it as a settlement. The purpose behind their application was to have the Court provisionally accept the new terms.
However, the Court found that the request was similar to a request for settling the case, so it had to be followed by Rule 60, not Rule 62.1.
In his statement, Stuart Alderoty pointed out that the response on its website does not change anything from the past ruling on XRP. Ripple and the SEC are still on the same page about resolving the case and will properly refile their request, as set out by the Court.
Conclusion
Judge Torres’ decision signals that the Court will not allow shortcuts or procedural missteps in finalizing the Ripple case. Both Ripple and the SEC must now present a revised motion that fully satisfies the legal criteria, delaying what appeared to be a near-final resolution in the high-profile dispute.
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