NY Judge Rejects SEC and Ripple’s Request for $50M Settlement Approval

A New York judge has denied a request from the SEC and Ripple Labs to approve a settlement that would reduce Ripple's civil penalty to $50 million and eliminate a permanent injunction against the company.

Key points from the ruling include:

The proposed removal of the injunction was the main issue, not the reduced penalty, which was cut from $125 million.
Judge Analisa Torres highlighted concerns about Ripple's potential future violations of federal securities laws.
The SEC, under new leadership, is adopting a more crypto-friendly stance but still faced rejection in this case.
This is the SEC’s second failed attempt for an indicative ruling from Torres, the first being rejected in May due to procedural flaws.
The judge stated that parties must demonstrate exceptional circumstances to alter a court's final judgment, which they failed to do.
Torres offered two alternatives for the parties to end the litigation: withdraw ongoing appeals or proceed with an appeal.

Torres emphasized that resolving the case cannot absolve Ripple of its legal obligations.