Settlement Denied: XRP Drops After Ripple Hits Legal Roadblock
Ripples bid to wrap up its longrunning fight with the US Securities and Exchange Commission hit a snag on May 15. A federal judge in New York tossed out the deal because it was filed the wrong way. This hiccup doesnt change past rulings, but it does force both sides back to the drawing board.
Court Blocks Settlement Motion
According to court papers, Judge Analisa Torres ruled that Ripple and the SEC used the wrong rule to ask for a change. They tried to dissolve an injunction and chop a $125million fine down to $50million. But under Rule60, you need to prove exceptional circumstances when youre asking to revisit a final order. Without that proof, the judge said the motion was procedurally improper and tossed it.
Nothing in todays order changes Ripples wins (i.e. XRP is not a security, etc). This is about procedural concerns with the dismissal of Ripples cross-appeal. Ripple and the SEC are fully in agreement to resolve this case and will revisit this issue with the Court, together. https://t.co/vBQdBD3FNe
Stuart Alderoty (@s_alderoty) May 15, 2025
Parties Must Refile Under Rule 60
Based on reports from attorney James Filan on X, Ripple and the SEC agreed on the deal back on May8. They even filed papers together. Yet, they skipped the part about showing why they should get a doover.
Now, both sides have to write up a new motion. Fred Rispoli, another lawyer, said theyll have to do it the hard, messy way by following the rule book. That means spelling out why a final court decision needs a second look.
Market Reacts With Price DropWhen word got out, XRP took a hit. The price slid about 2.5% in a single day. Open interest also fell by 9% to $4.90billion, according to CoinGlass data. Long positions worth over $21million were wiped out as traders scrambled to cut losses. Shortterm traders are watching a key support level at $2.35. If that line holds, we might see a bounce. If it breaks, prices could dip even further.
Legal Wins Remain IntactRipples chief legal officer, Stuart Alderoty, reminded everyone that past victories are safe. In 2023, a judge ruled that XRP wasnt a security in programmatic sales. Institutional sales still count as securities, but retail sales were cleared.
Alderoty said on X that this recent setback is just about procedural concerns with the dismissal of Ripples crossappeal. He made it clear that nothing in that ruling takes away what Ripple already won.
Next Steps For Ripple And SECNow, both sides face a longer road ahead. Theyll need to gather evidence for a new Rule60 motion. That could push any final settlement into late summer or beyond. Until then, traders will keep their eyes on court calendars and price charts.
Featured image from Bankless Times, chart from TradingView
Read more: https://www.newsbtc.com/altcoin/settlement-denied-xrp-drops-after-ripple-hits-legal-roadblock/
Text source: NewsBTC
