Judge Blocks Ripple-SEC XRP Settlement Proposal
- Proposal rejection affects Ripple’s $125M penalty reduction.
- XRP trading price declined by 3% post-decision.
- Rejection due to “procedurally improper” motion by parties involved.
Ripple Labs and the SEC’s proposed XRP lawsuit settlement was rejected by Judge Analisa Torres in the Southern District of New York on May 15, 2025.
This event highlights procedural caution in legal settlements and affects XRP’s market perception, with prices and penalties impacted.
In a significant turn of events, Judge Analisa Torres rejected a joint motion for the Ripple-SEC settlement citing procedural issues. The decision maintains the existing $125 million penalty originally imposed on Ripple.
Judge Analisa Torres, U.S. District Court Judge for the Southern District of New York, stated, “Relief from judgment requires a showing of exceptional circumstances” and emphasized that her decision was “procedurally improper” due to the lack of appropriate motions submitted by the parties. CoinTelegraph
The ruling comes after the SEC and Ripple sought an indicative ruling for a proposed settlement that would have reduced Ripple’s penalty. Ripple’s Chief Legal Officer emphasized that XRP remains a non-security despite this procedural setback.
Following the court’s decision, XRP prices fell by 3% as market participants assessed the implications. The decision to maintain the hefty penalty affects Ripple’s financial outlook and strategic planning.
Ripple initially announced the lawsuit’s end in March 2025, with planned procedural court revisions post-rejection. Legal experts suggest that both parties will readdress their approach to resolve the matter.
By maintaining earlier rulings, the court underscores XRP’s status for retail investors remains unchanged, reflecting on regulatory narratives in the cryptocurrency landscape. Industry participants continue to monitor this case for broader sector implications.
