U.S. District Judge Analisa Torres rejected the joint request from SEC and Ripple Labs for a designated judgment, calling it "procedurally improper".
Judge Torres made the decision on 05/15/2025, clearly stating that even if her court's jurisdiction returns, she would reject this request on procedural grounds.
What does this mean for SEC and Ripple's latest agreement?
This ruling means the previously agreed settlement between Ripple and SEC faces uncertainty. Previously, both parties had announced an agreement that would significantly reduce Ripple's civil penalty from $125 million to $50 million.
This agreement also included dissolving an order preventing Ripple from selling certain tokens.
However, Judge Torres emphasized that the joint request does not meet the legal standards prescribed in Federal Civil Procedure Rule 60. This rule requires proving "special circumstances" to modify or dissolve a court's final judgment.
Therefore, the original ban and initial penalty remain in effect until both parties submit an official request addressing these procedural issues.
The lawsuit has not been dismissed. Both Ripple and SEC initially suspended their appeals, anticipating the court would approve their joint settlement request.
Thus, Judge Torres' ruling means the appeal process may continue unless the parties file a modified request.
The rejection immediately impacted the market, with XRP price dropping right after the judgment was announced. This altcoin dropped nearly 5% today, though it has increased 15% over the past month.
Daily XRP price chart. Source: BeInCryptoInvestors and stakeholders had viewed the proposed settlement as a solution to the prolonged legal battle.
Overall, the story between SEC and Ripple continues into its fifth year. Ripple has made significant developments and expanded in the U.S. market following crypto-supportive regulations under Trump and changes in SEC enforcement. However, the XRP lawsuit remains an obstacle for Ripple, and legal complexities could prolong it further.
