Judge Keeps $125 Million Penalty as Ripple–SEC Settlement Bid Rejected

Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com U.S. District Judge Analisa Torres has denied a joint motion from Ripple Labs and the Securities and Exchange Commission that sought to slash Ripple’s civil penalty to $50 million and dissolve a standing injunction.The ruling, dated May 15, declared the filing “procedurally improper” under federal rules.Procedural MisstepIn her order, the judge stressed that a request to vacate a final judgment must satisfy Rule 60’s “exceptional circumstances” test.“By styling their motion as one for ‘settlement approval,’ the parties fail to address the heavy burden they must overcome to vacate the injunction and substantially reduce the civil penalty.Relief from judgment under Rule 60 is granted only upon a showing of exceptional circumstances,” the order reads.Because neither side cited that rule nor argued that standard, the court declined to consider the deal.Ripple’s Legal PositionRipple remains bound by an August 2024 finding that it violated securities laws by selling XRP to institutional investors without registration.Stuart Alderoty, Ripple’s chief legal officer, maintained that “nothing in today’s order changes Ripple’s wins.”He emphasized that the decision revolves around procedure, not substance, and said both parties will refine their submission and try again.Stakes for Crypto RegulationThe outcome preserves the original $125 million penalty and maintains pressure on Ripple, which has long argued that its native token should not be treated as a security.Regulators and industry watchers see the case as a bellwether for how aggressively the SEC can police token sales in the United States.Some analysts fear the setback could embolden regulators to demand tougher settlements in future enforcement actions.Path ForwardBoth Ripple and the SEC must now craft a compliant motion that meets Rule 60 criteria if they still want relief from the injunction and a reduced fine.Legal experts say they could submit fresh evidence, demonstrate changed circumstances, or pursue an appeal to a higher court.Until then, Ripple continues operating under the limitations imposed by the 2024 judgment, even as it markets payment products abroad and looks to expand onshore once clarity emerges.No information published in Crypto Intelligence News constitutes financial advice; crypto investments are high-risk and speculative in nature.Source link