TLDR:
- Judge Torres rejected Ripple and SEC’s joint settlement motion as “procedurally improper”
- XRP price dropped approximately 5-7% following the court decision
- The rejected settlement would have reduced Ripple’s penalty from $125 million to $50 million
- Ripple’s previous victory that XRP is not a security in programmatic sales remains intact
- Both Ripple and the SEC still intend to work together to resolve the case
XRP’s price took a hit on May 15, 2025, after a U.S. federal judge rejected a joint attempt by Ripple and the Securities and Exchange Commission (SEC) to settle their long-running legal battle. The decision has created fresh uncertainty in the market, though both parties have expressed their continued commitment to reaching a resolution.
Judge Analisa Torres of the U.S. District Court for the Southern District of New York dismissed the joint motion as “procedurally improper.” According to court documents shared by attorney James Filan on X, the motion wasn’t filed under Rule 60, which requires proof of exceptional circumstances when modifying a final ruling.
#XRPCommunity #SECGov v. #Ripple #XRP Judge Torres has denied the parties’ motion for an indicative ruling. “If jurisdiction were restored to this Court, the Court would deny the parties’ motion as procedurally improper.” pic.twitter.com/4s95ILvzsy
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) May 15, 2025
The rejected settlement proposal, filed on May 8, sought to dissolve an injunction against Ripple and reduce a $125 million civil penalty to $50 million. Both Ripple and the SEC had agreed to these terms as part of a broader effort to settle the case during ongoing appeals.
Ripple’s Chief Legal Officer, Stuart Alderoty, quickly addressed the crypto community after the ruling. He clarified that the court’s denial doesn’t affect the company’s prior legal victories, including the important 2023 ruling that XRP is not a security in programmatic sales.
“This is about procedural concerns with the dismissal of Ripple’s cross-appeal,” Alderoty wrote on X. “Ripple and the SEC are fully in agreement to resolve this case and will revisit this issue with the Court, together.”
Market Reaction
The court’s decision had an immediate impact on XRP’s market performance. The cryptocurrency dropped approximately 5-7% in the 24 hours following the announcement, with the price testing support at around $2.35.
Data from CoinGlass showed that XRP open interest declined by about 6-9.4% to around $5 billion. The uncertainty created by the court’s ruling led to significant liquidations, with long positions worth over $20 million being wiped out.
Technical analysts note that XRP is now testing a crucial trendline support. Some traders warn that a breach below this level could trigger a more substantial pullback to the next support zone in the $1.79 to $2.19 range.
$XRP is retesting the trend line from above. A break below this trend line could trigger the start of a larger pullback into the support region which is defined between $2.19 and $1.79. pic.twitter.com/Q3iLnDTNDz
— Man of Bitcoin (@Manofbitcoin) May 15, 2025
The cryptocurrency had already been underperforming compared to other major altcoins over the past month. While peers like Ethereum, Solana, and Dogecoin posted gains of 30-50%, XRP had managed only about 16% growth in the same period.
Legal Path Forward
Legal experts have outlined several potential next steps for both parties. Attorney Fred Rispoli suggested they now have to “do it the hard, messy way” by formally requesting relief under the appropriate legal rule.
Pro-XRP lawyer Bill Morgan described a possible resolution path involving a limited remand. This would involve:
- Filing a new motion for an indicative ruling
- Requesting the Court of Appeals for a limited remand to secure agreed-upon relief
- Filing a motion with Judge Torres seeking the agreed relief
- Dissolving the injunction and paying the reduced $50 million fine
- Moving to dismiss both the appeal and cross-appeal with the Second Circuit Court
The SEC originally sued Ripple in 2020, alleging that the company sold XRP as an unregistered security. In 2023, the court delivered a split decision, ruling that institutional sales qualified as securities offerings but that retail sales did not violate securities laws.
Traders remain cautious as they await the next legal developments. Many expect XRP’s price recovery to remain limited until there’s more clarity on how the case will proceed.
The latest court rejection doesn’t alter the fundamental legal victories Ripple has already secured, but it does extend the timeline for a final resolution to this lengthy dispute that has been ongoing since 2020.
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