US District Judge Analisa Torres has recently made a decision to deny a joint request from the US Securities and Exchange Commission (SEC) and Ripple Labs to dissolve an earlier court order and lower Ripple’s financial penalty. This ruling, issued on June 26, firmly rejected the attempt to undo a prior judgment tied to Ripple’s violations of securities laws through its XRP sales.
The SEC and Ripple had requested the court to remove the standing injunction requiring Ripple to comply with federal securities laws and reduce the $125 million penalty by more than 50%. However, Judge Torres refused both requests in a one-line response, stating: “The request is DENIED.”
This marks the second time she has dismissed both parties’ attempts to resolve the long-running case through a negotiated settlement. The court found that the parties failed to meet the stringent requirements to alter a final judgment. Changes to a final ruling demand extraordinary circumstances, which were not present in this case.
Judge Torres reaffirmed that Ripple had already been found violating federal securities laws, with a demonstrated likelihood of continued misconduct. The original ruling was about upholding public interest and deterring future violations, not just penalizing Ripple. She also rejected the idea that a final ruling could be vacated simply because both parties had agreed to settle.
According to Judge Torres, judicial decisions, especially those concerning federal law, are matters of public interest and not subject to private agreement alone. The penalty and injunction serve broader regulatory goals such as protecting investors, maintaining market integrity, and reinforcing compliance within the crypto space.
Ripple’s actions were not minor or inadvertent but marked by willful violations over an extended period. Judge Torres concluded that neither Ripple’s intent to settle nor the SEC’s willingness to compromise could override the need for accountability.
In essence, the court’s decision to deny the joint request from the SEC and Ripple Labs highlights the importance of upholding public interest and ensuring accountability in the regulatory space. The ruling serves as a reminder that judicial decisions are made in the interest of the legal community as a whole, and cannot be easily altered based on private agreements.