A federal judge in Manhattan has denied a request from Ripple Labs and the SEC to reduce a civil penalty from $125 million to $50 million, relating to illegal XRP sales. The judge maintained the $125 million penalty and the injunction imposed the previous year. Despite Ripple arguing that the SEC has become more crypto-friendly, Judge Analisa Torres emphasized that the SEC's foundational arguments remain unchanged. In a previous ruling, she found that Ripple's sales to institutional investors violated securities laws, though programmatic sales were not deemed illegal. Ripple's Chief Legal Officer, Stuart Alderoty, stated that options remain open for appealing the ruling, though he affirmed that XRP's status as a non-security remains. This ruling highlights the enduring impact of the SEC's approach to crypto regulation under former chair Gary Gensler, suggesting that the legal landscape for digital assets continues to be closely monitored.

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