Ripple's Legal Director Confirms XRP Still "Not a Security" Despite Court's Temporary Suspension of Proposed Settlement with SEC.
Although Judge Analisa Torres recently rejected the joint motion to reduce penalties and lift the ban, Ripple affirms that this does not undermine its previous key legal victory regarding XRP's "not a security" status. The new decision only relates to procedural matters and does not affect the content of the historic 2023 ruling.
"No details in today's ruling change Ripple's victory result (i.e., XRP is not a security, etc.)," Stuart Alderoty, Ripple's Legal Director, wrote on social media X immediately after the court's ruling.
Alderoty clearly explained that this is only a procedural issue related to Ripple's cross-appeal withdrawal, not a matter of XRP's legal essence. This statement was made after Judge Torres of the Southern District Court of New York rejected the joint motion by Ripple and SEC aimed at reducing penalties from $125 million to $50 million and lifting the ban.
Court Only Objected to Procedure, Not Settlement Content
According to the latest ruling, Judge Torres believed the joint motion was "procedurally inappropriate" and should have been filed under Rule 60 – which requires proving "special circumstances" for exemption from the final judgment. As a result, the ban preventing Ripple from violating securities laws in the future and the full penalties remain in effect while the lawsuit continues.
However, notably, Ripple's Legal Director still affirmed that both parties are moving towards a common solution: "Ripple and SEC are completely aligned in resolving this lawsuit and will review the matter with the court in the coming period."
The preliminary agreement between Ripple and SEC was announced on 5/8, aimed at reducing penalties and lifting the ban. Although the new court decision temporarily suspends this plan, the court still leaves open the possibility that parties can resubmit a motion with more appropriate procedures.
This indicates that despite procedural obstacles, both Ripple and SEC are still on the path to resolving the matter. More importantly, the historic 2023 ruling determining XRP is not a security when sold to the public remains in effect – a crucial factor for Ripple's future and the entire cryptocurrency industry.
