- Judge Analisa Torres has rejected Ripple and the SEC’s joint request to approve a $50 million settlement due to procedural issues.
- Despite the setback, both parties remain aligned on resolving the case and plan to revisit the matter in court.
The long-running legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has taken another dramatic turn. In a surprising move, Judge Analisa Torres has rejected the joint request from Ripple and the SEC to approve a $50 million settlement plan that would have significantly reduced Ripple’s financial penalty.
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Judge Denies Request Over Legal Technicalities
The rejected motion, filed on May 8, 2025, asked the court to lift an earlier ban on Ripple’s XRP sales and to reduce its $125 million penalty to $50 million. However, Judge Torres stated that the filing didn’t meet the legal criteria required under Rule 60, which governs changes to final court decisions. The judge emphasized that even if she had the authority to rule, the current request would still be denied due to procedural missteps.
A Quick Look Back at the Case
This case dates back to 2020, when the SEC accused Ripple of illegally selling XRP as an unregistered security. While Ripple has scored partial legal victories—most notably a ruling that XRP is not itself a security—the case has remained active. In 2024, Ripple was hit with a $125 million penalty, which the company has been seeking to reduce through a negotiated settlement with the SEC.
Earlier this year, both parties signed an agreement and asked the court to pause ongoing appeals. They filed a motion seeking what’s known as an “indicative ruling” to allow the appeals court to remand the case back to the trial court for final settlement approval. But that plan has now stalled.
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What Comes Next for Ripple and the SEC?
According to legal expert Bill Morgan, the rejected motion was intended to streamline the settlement process. Now, the parties must decide whether to revise their legal approach and refile properly or consider a different legal route.
Despite the setback, Ripple’s Chief Legal Officer Stuart Alderoty assured the community that the company’s previous legal wins remain intact. He emphasized that the disagreement is purely procedural and does not impact the court’s past rulings on XRP’s status.
As Ripple and the SEC return to the drawing board, the crypto community will be watching closely. This latest twist highlights just how complex and lengthy high-profile regulatory battles can be—especially when billions of dollars and the future of a major cryptocurrency are on the line.
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