SEC vs. Ripple case faces setback as court denies motion for settlement approval

From Yahoo Finance: 2025-05-15 17:54:00

Judge Analisa Torres denied the joint motion for an indicative ruling on the SEC vs. Ripple settlement, ruling it procedurally improper on May 15. The court stated that the parties didn’t file the correct procedural motion to vacate the final judgement.

Ripple and the SEC filed a joint settlement motion on May 8, which requested the court for an indicative ruling to dissolve the injunction prohibiting Ripple from unlawful securities sale and reduce the civil penalty from $125 million to $25 million.

The court ruled that both parties failed to satisfy the burden required to vacate the injunction and substantially reduce the penalty, classifying their motion as one for settlement approval under the Federal Rule of Civil Procedure.

Judge Torres granted relief from judgment only upon showing exceptional circumstances, denying the motion as procedurally improper. Despite the ruling, Ripple’s chief legal officer, Stuart Alderoty, emphasized that it does not affect Ripple’s overall wins.

In December 2020, the federal securities regulator sued Ripple for allegedly selling unregistered XRP token securities worth $1.3 billion. In July 2023, Judge Torres ruled that token sales to institutional investors violated securities laws, but those to retail investors did not.

Following the latest ruling, XRP experienced a 3% drop, trading at $2.44 at the time of writing.



Read more at Yahoo Finance: Ripple and SEC case faces a shocking turn