Emre Yumlu 
The Ripple community is requesting greater transparency regarding procedural issues after the court rejected the proposed settlement between Ripple and the U.S. Securities and Exchange Commission (SEC). The court’s decision came following the denial of the joint motion submitted by both parties.
Ripple: Court Rejection Does Not Affect the Won Case
Stuart Alderoty, head of Ripple’s legal team, stated that the rejection by Judge Analisa Torres of the U.S. District Court for the Southern District of New York does not invalidate Ripple’s gains in the XRP case. Alderoty emphasized that the ruling confirming XRP is not a security remains valid.
Ripple had announced the conclusion of the lawsuit on March 19. However, on May 15, the court rejected the joint motion for “preliminary approval” by Ripple and the SEC due to procedural deficiencies.
Nothing in today’s order changes Ripple’s wins (i.e. XRP is not a security, etc). This 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. https://t.co/vBQdBD3FNe
— Stuart Alderoty (@s_alderoty) May 15, 2025
Why Did the Court Deny the Motion?
Judge Torres pointed out that presenting the request as a “settlement approval” was not the correct approach. Particularly, requests to reduce the previously set $125 million fine and lift the injunction impose significant obligations on the court, which must be followed through proper procedures.
The judge wrote, “The parties have made no effort to meet this burden. Their submission does not even reference the applicable procedural rule.”
As noted, Ripple CEO Brad Garlinghouse had announced the case’s closure and revealed that the fine had been lowered to $50 million through the agreement with the SEC.
Uncertainty Sparks Reaction in XRP Community
Alderoty’s explanation that the court decision concerns only “procedural reasons” caused some dissatisfaction among XRP supporters. The community has called for more detailed information from Ripple regarding the issue.
Some users commented, “You said the case was closed, yet the court rejected the motion. Isn’t this misleading us?” Others stressed the need for Ripple to be more transparent both internally and externally.
Political Speculations Around XRP Also Emerge
Meanwhile, recent reports suggest that U.S. President Donald Trump was influenced by a lobby connected to XRP to announce plans to include XRP in a national digital reserve. These claims have attracted wide attention on social media.
Bitcoin advocates criticize Ripple’s proposal for a multi-token strategic reserve instead of a Bitcoin-only reserve. This has fueled debates between groups advocating for Bitcoin as the sole priority in crypto policies and those supporting a more inclusive approach.
No further statements have come from Ripple on the matter, but ongoing court developments and community reactions are expected to bring new updates soon.
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