The ongoing XRP lawsuit between Ripple and the SEC has reached another critical point. U.S. District Judge Analisa Torres of the Southern District of New York rejected the joint motion for a ruling and settlement submitted by both parties. Hopes for a swift resolution have been temporarily delayed. 

Ripple and the SEC had requested the $125 million penalty be reduced to $50 million and certain obligations to be lifted. However, the court found that this motion was not properly filed. 

Court Speaks Clearly: Procedural Errors Determine the Outcome 

Judge Torres referred to Federal Rule of Civil Procedure 60(b). The parties failed to consider this rule in their submissions. This rule only allows exceptions under extraordinary circumstances. Therefore, the court stated it could not review the motion. Additionally, presenting the requests as a settlement did not simplify the process. The court emphasized its duty to consider the public interest. The parties’ expectations were not met. 

Defense attorney James Filan explained on social media that the decision was based on procedure. According to him, the requests were not rejected but were dismissed due to incorrect filing. Meanwhile, legal expert Fred Rispoli warned about the process ahead. He said Ripple and the SEC would refile their motion properly. However, this time, the court must be convincingly persuaded of the public interest. 

XRP Price Drops 

Following the decision, XRP experienced a sharp decline. Losing over 4%, XRP fell to around $2.45. Naturally, this caused anxiety among investors. The prolonged lawsuit has reduced short-term market confidence. Ripple’s Chief Legal Officer, Stuart Alderoty, stated that the ruling does not affect the determination that XRP is not a security. He also emphasized that both parties agreed on the settlement and will revisit the court process. 

Legal analysts MetaLawMan and Bill Morgan also issued warnings. Both believe it has become more difficult for judges to overturn previous rulings. This means the case will become more complicated for Ripple and the SEC. 

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