TLDR
Judge Torres denies Ripple-SEC bid to modify XRP judgment, citing no exceptional grounds.
Court rejects attempt to dissolve Ripple injunction and cut penalties.
Final judgment in Ripple case upheld; public interest outweighs private deal.
Indicative ruling motion fails; SEC and Ripple must pursue formal appeals.
XRP Lawsuit Update: U.S. District Judge Analisa Torres has denied the joint motion by Ripple Labs and the U.S. Securities and Exchange Commission (SEC) seeking an indicative ruling. The request had aimed to dissolve a permanent injunction and reduce a previously imposed penalty in the XRP lawsuit.
The decision was made public in a court filing dated June 26, 2025. It adds another layer to the long-running legal case that began in 2020, when the SEC sued Ripple for selling XRP without registering it as a security.
Court Rejects Request to Modify Final Judgment in XRP Lawsuit
The SEC and Ripple had jointly asked the court to approve a motion that would (1) lift the permanent injunction on Ripple and (2) reduce the financial penalty against the company. The injunction had required Ripple to comply with securities laws following the court’s earlier summary judgment.
🚨JUST IN: Judge Torres has denied @Ripple and the @SECGov joint motion for an indicative ruling. pic.twitter.com/iPzD4aMG1H
— Eleanor Terrett (@EleanorTerrett) June 26, 2025
Judge Torres firmly rejected both requests in the XRP lawsuit, stating: “The request is DENIED.” She wrote that the joint motion failed to present any “exceptional circumstances” that could justify a change to the court’s prior final ruling. The court cited procedural grounds and legal standards that protect the integrity of judicial decisions.
In her order, Judge Torres referenced a prior Supreme Court decision, noting that a court’s final judgment is not just for the parties involved.
“A judgment is not the property of private litigants,” the ruling stated, “but belongs to the legal system as a whole.”
No Sufficient Grounds for Indicative Ruling in XRP Lawsuit
According to court documents, Ripple and the SEC had agreed to a settlement but required changes to the existing judgment to proceed. Their motion was meant to request permission from the district court for the appellate court to consider this adjustment.
However, Judge Torres said the parties “have not come close” to justifying a need for judicial reconsideration. She emphasized that only extraordinary situations can permit such modifications. The ruling stated that the interests of the public must also be considered, especially when altering final judgments from the court.
The SEC’s original case accused Ripple of violating the Securities Act of 1933 by offering XRP to institutional investors without registration. Judge Torres had partially ruled in favor of the SEC in July 2023, confirming that Ripple made unregistered institutional sales of XRP.
Public Interest Over Private Settlement
In rejecting the motion in the XRP lawsuit, Judge Torres pointed to the lack of a public interest argument. She maintained that private settlements cannot override court decisions unless there are compelling legal reasons. “The parties do not have the authority to agree not to be bound by a court’s final judgment,” she said.
Earlier, Ripple and the SEC had refiled this motion after the initial version was rejected due to a procedural issue. However, even after addressing the procedural form, the court found that the new motion did not meet the high standard for vacating a final order.
The court directed the Clerk of Court to terminate the motion filed under ECF No. 987, ending this part of the ongoing legal process.
Case Still Ongoing Despite Procedural Setback
While the ruling blocks changes to the earlier judgment, it does not conclude the overall legal proceedings. Other matters remain open in the case, including future regulatory considerations around the classification of digital assets.
The SEC has continued its enforcement actions in the crypto industry, while Ripple has maintained that XRP is not a security. Despite the court’s rejection of the joint motion, the legal dialogue between the two parties is expected to continue.
This denial marks a procedural setback for both Ripple and the SEC, as they sought to move forward based on a mutual resolution. However, Judge Torres’s firm stance on final judgments may influence how future crypto-related cases are handled in federal court.
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