{"id":4784,"date":"2025-05-16T18:13:06","date_gmt":"2025-05-16T18:13:06","guid":{"rendered":"https:\/\/coinsvalue.net\/blog\/settlement-denied-xrp-drops-after-ripple-hits-legal-roadblock\/"},"modified":"2025-05-16T18:13:06","modified_gmt":"2025-05-16T18:13:06","slug":"settlement-denied-xrp-drops-after-ripple-hits-legal-roadblock","status":"publish","type":"post","link":"https:\/\/coinsvalue.net\/blog\/settlement-denied-xrp-drops-after-ripple-hits-legal-roadblock\/","title":{"rendered":"Settlement Denied: XRP Drops After Ripple Hits Legal Roadblock"},"content":{"rendered":"

Ripple\u2019s bid to wrap up its long\u2011running fight with the US Securities and Exchange Commission hit a snag on May 15. A federal judge in New York tossed out the deal<\/a> because it was filed the wrong way. This hiccup doesn\u2019t change past rulings, but it does force both sides back to the drawing board.<\/p>\n

Court Blocks Settlement Motion<\/h2>\n

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 $125\u202fmillion fine down to $50\u202fmillion. But under Rule\u202f60, you need to prove \u201cexceptional circumstances\u201d when you\u2019re asking to revisit a final order. Without that proof, the judge said the motion was \u201cprocedurally improper\u201d and tossed it.<\/p>\n

\n

Nothing in today\u2019s order changes Ripple\u2019s wins (i.e. XRP is not a security, etc). This is about procedural concerns with the dismissal of Ripple\u2019s 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<\/a><\/p>\n

\u2014 Stuart Alderoty (@s_alderoty) May 15, 2025<\/a><\/p>\n<\/blockquote>\n

\"\"<\/p>\n

Parties Must Refile Under Rule 60<\/h2>\n

Based on reports from attorney James Filan on X, Ripple and the SEC agreed on the deal back on May\u202f8. They even filed papers together. Yet, they skipped the part about showing why they should get a do\u2011over.<\/p>\n

Now, both sides have to write up a new motion. Fred Rispoli, another lawyer, said they\u2019ll have to \u201cdo it the hard, messy way\u201d by following the rule book. That means spelling out why a final court decision needs a second look.<\/p>\n

<\/p>\n

Market Reacts With Price Drop<\/p>\n

When word got out, XRP<\/a> took a hit. The price slid about 2.5% in a single day. Open interest also fell by 9% to $4.90\u202fbillion, according to CoinGlass data.<\/a> Long positions worth over $21\u202fmillion were wiped out as traders scrambled to cut losses. Short\u2011term 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.<\/p>\n

\"\"<\/p>\n

Legal Wins Remain Intact<\/p>\n

Ripple\u2019s chief legal officer, Stuart Alderoty, reminded everyone that past victories are safe. In 2023, a judge ruled that XRP wasn\u2019t a security in programmatic sales. Institutional sales still count as securities, but retail sales were cleared.<\/p>\n

Alderoty said on X that this recent setback is just about \u201cprocedural concerns with the dismissal of Ripple\u2019s cross\u2011appeal.\u201d He made it clear that nothing in that ruling takes away what Ripple already won.<\/p>\n

Next Steps For Ripple And SEC<\/p>\n

Now, both sides face a longer road ahead. They\u2019ll need to gather evidence for a new Rule\u202f60 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.<\/p>\n

Featured image from Bankless Times, chart from TradingView<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Ripple\u2019s bid to wrap up its long\u2011running 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 doesn\u2019t change past rulings, but it does force both sides back to the drawing board.…<\/p>\n","protected":false},"author":1,"featured_media":4785,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[638],"tags":[94,34,56,36,44,1747,218,940,40],"class_list":["post-4784","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-altcoin","tag-altcoin","tag-altcoins","tag-bitcoin","tag-crypto","tag-ripple","tag-ripple-vs-sec","tag-sec","tag-security","tag-xrp"],"_links":{"self":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts\/4784","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/comments?post=4784"}],"version-history":[{"count":0,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts\/4784\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/media\/4785"}],"wp:attachment":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/media?parent=4784"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/categories?post=4784"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/tags?post=4784"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}