Ripple and SEC’s Dramatic Courtroom Fail: The Neverending Saga Continues…

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The Last Revolt: Ripple and SEC’s Unsuccessful Effort to End Their Epic Legal Drama

Judge Denies Ripple and SEC Cooperation

In a move that could best be described as the legal equivalent of a damp squib, a U.S. judge swiftly shot down a joint motion from the venerable Securities and Exchange Commission (SEC) and the ever-creative blockchain firm Ripple. It was to be the grand finale—or so they hoped—aimed at putting this protracted courtroom melodrama to bed.

Previously, Ripple and the SEC had bravely submitted a joint motion earlier this month, requesting a kind of legal “crystal ball” to see if District Judge Analisa Torres would entertain the idea of abandoning Ripple’s hefty $125 million civil penalty—reducing it to a mere $50 million, perhaps to allow for a celebratory drink or two.

The SEC has, quite humorously, been retreating from many of its crypto crusades since President Trump left office and Gary Gensler’s throne got a little less secure—probably feeling the heat from the crypto community, or perhaps just tired of losing.

Judge Torres, however, was having none of it. She declared that both parties “fail to address the heavy burden they must overcome to vacate the injunction and substantially reduce the civil penalty,” as if they were attempting to lift the Tower of Pisa without a crane—fanciful and doomed to fail.

In her own words,

“Relief from judgment under Rule 60 is granted ‘only upon a showing of exceptional circumstances’… The parties have made no effort to satisfy that burden here; their request does not even mention the rule. ”

“Accordingly, if jurisdiction were restored to this court, the court would deny the parties’ motion as procedurally improper.”

Breaking News: The SEC first set its legal sights on Ripple back in late 2020, accusing the payments firm of selling XRP as an unregistered security—a daring move that caused many eyebrows to rise and wallets to tighten.

Fast forward to 2023, Judge Torres ruled that Ripple’s straightforward, automated sales of XRP on the open market weren’t securities offerings after all—much to the SEC’s chagrin. However, she did agree that Ripple’s direct sales to big institutional buyers looked suspicious, and thus were securities by her standard.

In August of last year, she slapped Ripple with a $125 million civil penalty — a number that, unsurprisingly, both sides promptly appealed, engaging in a thrilling dance of legal ping-pong over the sum.

So here we are, still stuck in legal limbo, with no clear resolution in sight—just the usual courtroom soap opera, featuring drama, fees, and a healthy dose of sarcasm. 🎭💸

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2025-05-17 19:22