Judge Rejects SEC and Ripple's Bid to Rework XRP Settlement

By: decrypt|2025/05/16 11:15:06
0
Share
copy
Judge Rejects SEC and Ripple's Bid to Rework XRP Settlement U.S. District Judge Analisa Torres said Thursday that even if she had jurisdiction, she would still deny the motion as “procedurally improper.” In brief A federal judge denied SEC-Ripple settlement due to procedural errors in their joint filing. The proposed deal would have reduced Ripple's fine from $125 million to $50 million, ending a 4-year legal battle. Both parties remain committed to resolution despite the setback, with XRP trading at $2.42. Decrypt’s Art, Fashion, and Entertainment Hub. A federal judge has denied a joint bid by the SEC and Ripple Labs to approve their settlement , citing procedural errors just weeks after both sides agreed to drop their appeals and end a four-year legal battle. U.S. District Judge Analisa Torres said Thursday that even if she had jurisdiction, she would still deny the motion as “procedurally improper.” The SEC and Ripple had filed for an indicative ruling, a non-binding signal from the court that it would accept a deal dissolving Ripple’s injunction and reducing its $125 million fine to $50 million. Such rulings are used when a case is on appeal and the trial court no longer has authority to act. In this instance, jurisdiction rested with the Second Circuit, where both parties filed cross-appeals after the final judgment in August 2024. Last month, Ripple Labs and the SEC jointly filed a request to the Second Circuit to suspend those appeals as they “pursue a negotiated resolution” of their case. The filing also confirmed that the SEC would drop its October appeal. However, the Second Circuit has not yet ruled on that request. But the recent filing to Judge Torres bypassed Rule 60 of civil procedure, which governs relief from final judgments, and failed to demonstrate the “exceptional circumstances” required under that standard. “The parties have made no effort to satisfy that burden here; their request does not even mention the Rule,” Torres wrote in the May 15 order. Decrypt has reached out to Ripple for comment and will update the story if and when a response is received. The lawsuit dates back to December 2020, when the SEC accused Ripple of raising $1.3 billion through unregistered XRP sales. In July 2023, Judge Torres ruled that institutional sales violated securities laws but that exchange-based retail sales did not, triggering a ray of optimism in the crypto industry. Since Donald Trump’s return to office, the SEC under leadership of former acting chair Mark Uyeda has scaled back crypto enforcement. Lawsuits against Coinbase , Kraken , and many others have been dropped, and new SEC Chair Paul Atkins , confirmed by the Senate last month, is expected to take a far more lenient stance than former chair Gary Gensler. In its last week announcement, the SEC formally confirmed the $50 million deal. Ripple will pay the reduced fine, with the remaining $75 million in escrow returned to the company. “Nothing in today’s order changes Ripple’s wins,” Ripple CLO Stuart Alderoty tweeted following the Judge’s order. “Ripple and the SEC are fully in agreement to resolve this case and will revisit this issue with the Court, together.” XRP , which has surged over 366% for the past year, was down 1.6% on the day, trading at $2.42, according to CoinGecko data. Edited by Stacy Elliott . Daily Debrief Newsletter

You may also like

Predicting the market does not predict the truth; it simply rewards those who guess right

Predicting the market is not about discovering the truth but about monetizing asymmetric information.

Delphi Digital's Top 10 Predictions for 2026: Perp DEX Eats Wall Street, AI Agents Usher in Era of Autonomous Trading

AI Agent Trading, Perp DEX Integration, Prediction Market Infrastructure, and On-chain Credit will be key developments in the 2026 crypto market.

X Pulls the Plug — the Era of “Talking Your Way to Traffic” Comes to an End.

Other people’s traffic will always belong to them—not to you.

First Zero, First Revival: A Real Story from the WEEX Global AI Trading Hackathon Preliminary Round

WEEX Labs, the innovation arm of the global crypto exchange WEEX, launched the preliminary round of its flagship AI trading hackathon, AI Wars: WEEX Alpha Awakens, on January 12, 2026. Backed by world-class sponsors including AWS, the prize pool has reached $1.88 million, with a Bentley Bentayga S awaiting the champion in Dubai. Already, 788 elite teams worldwide are battling for a spot in the finals. This is more than a hackathon — it is a real-market stress test for AI trading. Registration remains open until January 18. If you want your AI to face real volatility, this is your moment.

AI Wars: WEEX Alpha Awakens – Insights, Top Strategies, and Real-Market Execution Takeaways

WEEX Labs has officially launched the preliminary round of its global AI trading hackathon, AI Wars: WEEX Alpha Awakens, bringing together hundreds of elite teams to compete in real-market conditions. With a record-breaking $1.88 million prize pool and backing from top-tier sponsors like AWS, the event has quickly become a global proving ground for AI-powered trading strategies. As competition intensifies and standout teams emerge on the leaderboard, the hackathon not only showcases cutting-edge AI execution and risk management, but also offers valuable insights and inspiration for traders looking to build or refine their own AI-driven systems.

WEEX P2P now supports Polish zloty (PLN)—new users and merchant rewards

To make crypto deposits easier, WEEX has officially launched its P2P trading platform and continues to expand fiat support. We're excited to announce that the Polish Zloty (PLN) is now available on WEEX P2P!

Popular coins

Latest Crypto News

Read more