Crisis in the case between Ripple and the SEC: "Convince me"

As the four-year legal battle between Ripple and the Securities and Exchange Commission (SEC) was nearing its end, an unexpected ruling halted the process. Judge Analisa Torres of the Southern District of New York rejected the parties' joint request to reduce the penalty and lift the court injunction, deeming it "procedurally improper."

Ripple and the SEC filed a petition with the court on May 7, requesting that the $125 million penalty imposed in August 2024 be reduced to $50 million and that the injunction on Ripple be lifted. However, Judge Torres stated that the legal process was not properly operated and the public interest was not adequately taken into account, and called on the parties to submit a stronger application. Attorney John Deaton said the decision was a message to the SEC, arguing that the judge sent a message: "I don't approve of everything, convince me."

If the judge had accepted the request, the case would have been closed, Ripple's funds would have been released, and the parties would have withdrawn their mutual appeals. However, with the rejection decision, this process has been postponed. Judge Torres stated in the partial ruling he made in 2023 that the sales of XRP on exchanges are not considered securities, but that federal laws were violated in direct institutional sales.

Ripple's General Counsel Stuart Alderoty stated that the decision did not affect previous rulings in favor of Ripple and emphasized that this was merely a "procedural issue."

At the time the news was written, XRP is trading at a level of 2.44 dollars.

Published: May 16, 2025 17:44