The American court rejected the proposal to fall the slashing of 125 million USD in the Ripple – SEC case.

A U.S. federal court has rejected a joint request from the Securities and Exchange Commission (SEC) and Ripple for an "indicative ruling" ( to reduce the civil penalty from 125 million USD to 50 million USD, while also overturning a previous ruling that the sale of XRP to institutional investors violated Section 5 of the Securities Act.

A preliminary ruling is a legal tool that allows a trial court to make a decision while the case is being appealed in a higher court, but it still must wait for approval from the higher authority.

In a filing submitted to the Southern District Court of New York on Thursday, Judge Analisa Torres emphasized that the court would not alter previous rulings, including the slashing of $125 million, as these rulings are fully consistent with the federal securities laws enacted by Congress.

![])https://img-cdn.gateio.im/webp-social/moments-96261996d0a2c58807561524c381f469.webp(The order of U.S. District Judge Analisa Torres rejects the joint motion regarding the advisory ruling | Source: PACERMs. Torres wrote:

"The court has accepted part of the SEC's request for a ban and civil penalty, finding that Ripple tends to intentionally exceed the limits of the preliminary ruling. Nothing has changed - and both sides almost do not deny that. Nevertheless, now they claim that the public interest requires a 60% fall in the penalty and the cancellation of the ban that was issued less than a year ago."

Torres stated that the parties can only adjust the penalties and overturn the initial ruling through the appeal process stipulated by Congress, and cannot directly request the trial court to reverse its own decision.

Although the lawsuit is in the closing stage and both SEC and Ripple have agreed to terminate the entire case, the court's ruling is still being closely monitored by the cryptocurrency community.

Ripple celebrates victory after SEC withdraws appeal

On March 19, Ripple CEO Brad Garlinghouse announced that the SEC had withdrawn its appeal against the company and called it a "resounding victory" for Ripple as well as the entire crypto industry.

As part of the settlement agreement, both parties have submitted a proposal to release the $125 million escrow that the court had previously required Ripple to deposit to secure the slashing. According to the records, $50 million will be transferred to the SEC as a penalty that has been reduced by 60%, while the remaining $75 million will be refunded to Ripple, pending court approval.

Thach Sanh