As Ripple and the SEC thought they had found a compromise to close a nearly five-year chapter, the US justice system ruled: the proposed deal will not go through. Judge Analisa Torres, handling the case at the federal court in New York, bluntly rejected their joint request to lift the permanent injunction issued against Ripple.
The reason? Nothing has changed. In her decision on June 26, the judge believes that the two parties “don’t even try to pretend otherwise”. And she minces no words:
“None of this has changed, and the parties hardly pretend that it has.”
La juge dit non, encore une fois pour la SEC et Ripple
The heart of the rejected agreement: a 60% fine reduction. Out of the initially planned $75 million, the SEC was to receive $50 million, with the remaining $25 million going to Ripple. But for the judge, a violation of federal law cannot be simply swept under the rug.
She emphasizes that only a showing of “exceptional” circumstances could justify such a partial erasure. However, in this case, “the parties are not even close”. And she adds a stinging reminder of the separation of powers:
“The parties do not have the authority to ignore a final judgment of a court declaring that a law of Congress has been violated.”
Flashback on the Ripple vs SEC case: a $1.3 billion trial
Since late 2020, Ripple has been in the SEC’s crosshairs, accused of illegally raising $1.3 billion through the sale of XRP. Part of these sales, known as ‘programmatic sales’, was deemed unproblematic by Judge Torres, as they were conducted through a blind-bidding process.
Change of era at the SEC, but unchanged justice
Since January 2025, the Trump administration has replaced Gary Gensler at the helm of the SEC. As a result, several crypto investigations have been dropped, a crypto task force has been launched, and the overall tone has softened. However, for the judge, this shift does not justify a rewriting of judicial history. Even if the SEC wants to close its cases, adherence to the law takes precedence over backroom deals.
Next step: drop or appeal
Ripple and the SEC can still abandon their appeals or appeal this decision. But one thing is clear: Judge Torres refuses to let justice become a mere tool for negotiation between regulators and crypto companies.
