Judge Analisa Torres has rejected a $50 million settlement between Ripple and the SEC that would have dissolved the permanent injunction blocking the institutional sales of XRP.
The June 26 ruling maintains Ripple’s business restrictions indefinitely, despite both parties agreeing to reduce the original $125 million penalty by 60%.
The case fundamentally challenged whether XRP constitutes a security or commodity under federal law, with implications for the entire digital asset industry. Torres delivered a split decision in July 2023 that became crypto law’s most nuanced ruling.
The SEC launched its investigation into Ripple in December 2020, alleging that the company conducted a $1.3 billion unregistered securities offering through XRP sales.
Under the proposed deal, Ripple would pay $50 million in exchange for $75 million of the original penalty, with the SEC requesting the removal of the institutional sales injunction. The deal appeared to offer mutual relief, but Torres rejected the arrangement as “procedurally improper,” and criticized both sides for failing to justify vacating court-imposed restrictions.
However, the May 2025 settlement agreement offered a path forward for both parties. However, the May 2025 settlement agreement offered a path forward for both parties.
The regulator has dropped enforcement actions against Coinbase, Cumberland DRW, and Gemini, while closing investigations into Uniswap, OpenSea, and Robinhood Crypto without pursuing charges. These dismissals are part of a broader shift in SEC policy under acting Chair Mark Uyeda and incoming Chair Paul Atkins, who favor regulatory clarity over enforcement-heavy approaches.
Ripple’s prolonged legal struggle stands in stark contrast to the swift resolution of other high-profile SEC cases in 2025.