Just In: Ripple’s Hopes Dashed as Judge Refuses to Lift XRP Restrictions in SEC Lawsuit

Ripple Labs has been dealt a blow in its legal battle with the U.S. Securities and Exchange Commission after a federal judge rejected its latest attempt to ease court-imposed restrictions.

U.S. District Judge Analisa Torres denied a joint motion filed by both Ripple and the SEC that sought a possible path to dissolve the standing injunction and reduce financial penalties tied to the XRP case.

According to Fox Business reporter Eleanor Terrett, who confirmed the development on X, the motion—filed under ECF No. 987—asked for an indicative ruling. This request would have allowed the court to signal whether it was open to changing an earlier decision that penalized Ripple for violating federal securities laws.

The judge, however, denied the request in an official order signed and dated June 26, 2025.

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The legal action began in December 2020 when the SEC sued Ripple Labs, alleging it sold XRP as an unregistered security. The agency claimed Ripple failed to provide investors with required disclosures, as mandated under the Securities Act of 1933.

In July 2023, Judge Torres ruled that Ripple did breach securities laws during institutional XRP sales, although not in all transactions. As a result, Ripple faced a permanent injunction that limited its future XRP-related activities and imposed a substantial financial penalty.

These restrictions were central to the latest motion, which has now been denied.

Just In : #Ripple’s Hopes Dashed as Judge Refuses to Lift $XRP Restrictions in #SEC Lawsuit pic.twitter.com/hPc7a9c5E9

— 36crypto – Daily Cryptocurrency News and Update (@36Crypto2) June 26, 2025

Court Dismisses Joint Bid to Modify Sanctions and Injunction

In March 2024, the SEC moved to enforce the injunction and sought further penalties. Both parties later agreed to file a joint motion requesting an indicative ruling that could potentially change those outcomes.

The motion aimed to learn whether the court would consider lifting the injunction and reducing the penalty.

Judge Torres rejected the motion without offering any indication that the prior ruling could be reconsidered. Her order clearly stated that the existing court sanctions would remain unchanged, and she directed the Clerk of Court to close the motion entirely.

Ripple Remains Bound by Court-Imposed Restrictions

With this latest decision, Ripple remains under the same legal obligations and financial penalties outlined in the court’s earlier summary judgment. The denial reflects the court’s firm stance on maintaining accountability for securities law violations, despite mutual efforts by both Ripple and the SEC to revisit terms.

The case continues to serve as a major precedent in U.S. crypto regulation, and Ripple’s hope for relief through the courts has, for now, been shut down.

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The post Just In: Ripple’s Hopes Dashed as Judge Refuses to Lift XRP Restrictions in SEC Lawsuit appeared first on 36Crypto.