XRP Plunges: Court Shockwave Halts Ripple-SEC Peace Talks

Ripple’s Settlement with SEC faces Legal Hurdle

Ripple’s efforts to settle its legal dispute with the U.S. Securities adn Exchange Commission hit a snag. A federal judge dismissed their joint request, citing procedural issues.Judge Analisa Torres of the U.S. District Court for the Southern District of New York made this decision on May 15. Attorney James Filan shared the news on X, along with the court documents.

the judge found the motion “procedurally improper.” It didn’t follow Rule 60, which demands evidence of remarkable circumstances for altering a final ruling. The motion aimed to lift an injunction and lower a $125 million fine to $50 million. Both parties had agreed on this deal as part of a larger settlement plan. However, the judge ruled it didn’t meet the necessary legal standards.

This setback doesn’t change Ripple’s earlier legal victories. In 2023, a ruling stated that XRP isn’t a security in programmatic sales. Ripple’s legal head, Stuart Alderoty, reassured the crypto community. He explained that the dismissal is about process, not the case’s substance. Ripple and the SEC must now refile under the correct rule. This delay could extend the ongoing legal battle.

Attorney Fred Rispoli commented on the situation. He said the dismissal is about procedural concerns with the dismissal of Ripple’s cross-appeal. Ripple and the SEC are fully in agreement to resolve this case and will revisit this issue with the Court, together.

Attorney Fred Rispoli added that both sides now have to “do it the hard, messy way” by formally requesting relief under the appropriate legal rule.

The SEC sued Ripple in 2020 for allegedly selling XRP as an unregistered security, sparking the start of a protracted legal battle.The SEC won a partial decision in 2023 that ruled that institutional sales qualified as securities. Though, it was decided that retail sales did not violate security laws.

The delay has shaken market sentiment. XRP fell about 7% over the last day, while CoinGlass data indicates a 9.4% drop in open interest to $4.93 billion. As traders responded to the court’s ruling and the uncertainty it created, long positions worth over $21 million were liquidated.Traders are keeping a close eye on XRP’s next move as it retests support at $2.36.