Yeliz Akmaca 
The U.S. District Court for the Southern District of New York has denied the second joint motion filed by Ripple and the SEC. Judge Analisa Torres’ decision has reignited the long-standing debates surrounding XRP.
Why Did the Court Say “No”? Ripple’s Request for Penalty Reduction
The legal battle between Ripple and the SEC began in 2020. The SEC accused Ripple of conducting an unregistered securities offering worth $1.3 billion through XRP sales. The prolonged lawsuit partially concluded in favor of Ripple in 2023. The court ruled that public sales of XRP to retail investors did not violate securities laws. However, direct sales to institutional investors were found to be unlawful.
In early June 2024, Ripple and the SEC jointly requested to reduce the $125 million penalty to $50 million and to lift the injunction on institutional XRP sales. However, Judge Analisa Torres rejected the request, stating that such changes would harm the public interest. As a result, both the request for a reduced penalty and lifting of the injunction were denied.
No Change Without “Exceptional Circumstances”
According to Rule 60(b) of the Federal Rules of Civil Procedure, final judgments can only be altered under “exceptional circumstances.” Ripple and the SEC cited changes in SEC policies as justification. However, the judge concluded that these arguments were insufficient. While they pointed to the SEC withdrawing similar cases against Binance and Coinbase, the judge emphasized that those cases had not reached final judgment—unlike the Ripple case, which had already resulted in a conclusive ruling.
Market Impact of the Decision
Following the decision, XRP’s price dropped by approximately 3–4%, as both investors and market analysts viewed the ruling as a strong signal from the court. The court emphasized its aim to uphold the rule of law and protect investor rights. Both the penalty reduction and injunction removal were rejected. It remains unclear whether Ripple and the SEC will pursue an appeal. For now, the $125 million penalty and the restrictions on institutional XRP sales remain in effect.
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