A federal judge has denied a joint motion from the SEC and Ripple Labs to vacate a previous ruling against Ripple concerning the sale of its XRP token. In May, both parties sought to dissolve an injunction and reduce Ripple's civil penalties from $125 million to $50 million. However, Judge Analisa Torres ruled that they failed to show how vacating the prior ruling would serve the public interest. Torres emphasized that private settlements cannot override significant court decisions, especially concerning violations of federal law. She noted the potential consequences of this case, indicating the importance of upholding judicial rulings despite private agreements. The SEC had initially filed the lawsuit in December 2020, accusing Ripple of selling unregistered securities. While the court sided with the SEC regarding institutional sales, it ruled that retail sales of XRP were not considered as such. Following this, the SEC's appeal was paused after a joint motion with Ripple, pending the settlement review.

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