Judge Rejects SEC-Ripple Settlement Again, Upholds Permanent Injunction Against XRP

US Southern District of New York Federal Judge Analisa Torres has once again declined the settlement proposal between the SEC and Ripple, underscoring ongoing regulatory challenges in the crypto sector. The proposal sought to reduce Ripple’s penalty to $50 million and remove the permanent injunction restricting its operations. However, Judge Torres emphasized that the injunction remains essential due to Ripple’s continued potential to breach federal securities laws. This decision highlights the judiciary’s cautious stance toward enforcement in cryptocurrency disputes, prioritizing investor protection over expedited settlements.

Judge Torres’ ruling specifically focused on the injunction’s role in preventing further violations, rather than the monetary fine. Although the fine was significantly lowered from the initial $125 million, the injunction serves as a critical safeguard. The court noted Ripple’s substantial financial gains during the alleged violations, reinforcing the necessity of ongoing restrictions to deter future non-compliance. This development signals sustained regulatory scrutiny for crypto firms navigating complex securities frameworks.