A US district court has denied a joint motion from the SEC and Ripple to reduce a $125 million civil penalty related to XRP, ruling that Ripple must adhere to federal securities laws. Judge Analisa Torres stated that the court would not reverse earlier rulings that found Ripple's primary sales of XRP to institutional investors classify as securities transactions under the Securities Act. The judge emphasized that any changes to these rulings should occur through the official appeals process rather than petitions to lower courts. Ripple's legal team did not respond for comments on the ruling. This decision comes as both Ripple and the SEC agree to drop the ongoing lawsuit, pending approval of the new arrangements for the financial penalties.

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