Quick overview

Live XRP/USD Chart

---

The US Securities and Exchange Commission (SEC) and Ripple recently submitted an unusual joint motion to support a reduction of Ripple’s fine from $125 million to $50 million, to settle a civil lawsuit regarding the sale of unregistered securities. However, the motion was rejected by Judge Analisa Torres of the US District Court for the Southern District of New York.

The XRP token was down by over 4% and struggled to hold $2.1 support line in the early hours of Friday amid significant selling pressure.

 The SEC and Ripple asked Judge Torres to lift a permanent injunction against Ripple and reduce the financial penalty. They invoked Rule 60(b), which allows a court to relieve a party from a final judgment, arguing that their request was based on a settlement agreement.

Judge Torres reprimanded both parties for suggesting that their March settlement should exempt Ripple from adhering to her permanent injunction against breaking the law.

Stuart Alderoty, Ripple’s Chief Legal Officer, mentioned on X that the company has not yet decided on its next legal steps. The SEC did not provide an immediate response.

Judge Torres accepted that the SEC can change its approach to enforcement cases and noted that the agency has been easing its oversight of cryptocurrencies. However, she stated that both parties “had not come close” to proving that the settlement was justified due to extraordinary circumstances that would outweigh public interest and the administration of justice.

She wrote, “A court’s final judgment that a party violated an Act of Congress in a way that required a permanent injunction and a civil penalty to prevent that party from breaking the law again cannot be agreed to by the parties.” Consequently, she indicated that if jurisdiction were returned to her court, she would reject both the request to lift the injunction and to reduce the civil penalty.

According to Judge Torres, the SEC and Ripple still have the option to withdraw their appeals or to challenge her injunction. As of Thursday, XRP is noted to be the fourth-largest cryptocurrency by market value, following Bitcoin, Ethereum, and Tether, according to market service CoinMarketCap.