The U.S. District Court for the Southern District of New York rejected Ripple and SEC's settlement motion on grounds of procedural impropriety

Judge Analisa Torres denied a motion for indicative ruling filed by the Securities Exchange Commission (SEC) and Ripple Labs, according to court filings for the Southern District of New York. The motion asked the court to lift the injunction against Ripple's illegal sale of securities and reduce the $125 million civil penalty to $50 million.
The parties reached an agreement on May 8, 2025, to attempt to resolve the lawsuit in district court and the 2nd Circuit Court of Appeals, according to court documents. The terms of the agreement included the revocation of the injunction against Ripple and a 60 percent reduction in civil penalties. The court, however, found that the parties failed to meet the "exceptional circumstances" standard needed to modify the final judgment, and therefore denied the request.