• Written by: Emily Harper
  • Fri, 16 May 2025
  •   Ethiopia

Key Takeaways: Judge Torres rejected the RippleSEC $75M penalty reduction deal on procedural grounds, citing a lack of exceptional circumstances. The ruling does not reverse prior court victories for Ripple,The post Judge Blocks $75M XRP Settlement Deal: Ripple Case Faces Fresh Delay Amid Legal Twist appeared first on CryptoNinjas.

Judge Blocks $75M XRP Settlement Deal: Ripple Case Faces Fresh Delay Amid Legal Twist

Key Takeaways:

  • Judge Torres rejected the RippleSEC $75M penalty reduction deal on procedural grounds, citing a lack of exceptional circumstances.
  • The ruling does not reverse prior court victories for Ripple, including the key judgment that XRP itself is not a security.
  • News of the suggested settlement caused XRPs price to fall to $2.43, undoing recent increases.

On May 15, 2025, Judge Analisa Torres rejected a combined motion seeking to lower Ripples penalty and settle the long-running legal conflict between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), hence causing further difficulty. The ruling comes as a surprise to many in the crypto community, who believed the parties were nearing final closure.

Read More: SEC Officially Drops XRP Lawsuit, Ripple Celebrates Landmark Victory

Judge Torres Rejects RippleSEC Joint Motion

In a filing issued May 15, Judge Torres declared the joint motion filed by Ripple and the SEC procedurally improper. The parties sought an indicative ruling to vacate a prior injunction and reduce the civil penalty from $125 million to $50 milliona 60% cut.

However, under Federal Rule of Civil Procedure 60, such a move requires the court to find exceptional circumstances. According to Judge Torres, those circumstances were not present. She wrote that even if the case were remanded to her jurisdiction, the motion would still be denied for failing to follow proper procedure.

If jurisdiction were restored to this Court, the Court would deny the parties motion as procedurally improper, Judge Torres stated recenlty.

This decision delays what many had expected to be the final phase of a lawsuit that began in December 2020, when the SEC accused Ripple of selling unregistered securities worth $1.3 billion through XRP.

Read More: Ripple CLO Slams SECs Retreat, Urges Clear Crypto Rules After XRP Lawsuit Ends

Ripple Maintains Legal Wins Despite Setback

XRP is Still Not a Security for Retail Sales

Ripples Chief Legal Officer, Stuart Alderoty, responded promptly, emphasizing that this ruling does not undo prior court victoriesincluding the major win from July 2023, where Judge Torres clarified that XRP itself is not a security when sold to retail investors.

Nothing in todays order changes Ripples wins, Alderoty wrote on X (formerly Twitter). This is about procedural concerns Ripple and the SEC remain aligned on resolving the case.

In essence, the court blocked the procedural path, not the agreement itself. Ripple and the SEC may revisit the matter using a more appropriate filing route.

XRP Market Reacts to Legal Setback

The legal uncertainty briefly rattled XRP markets. After surging over 23% between May 8 and May 14peaking above $2.60XRP dropped to $2.43 following the judges decision. The rejection sparked volatility, with some traders concerned that further delays could lead to continued regulatory overhang.

While the market reaction was swift, analysts argue the pullback may be temporary. This ruling doesnt materially change the legal landscape for XRP. Its more of a process hiccup than a fundamental reversal, said crypto legal analyst Katherine Wu.

Whats Next for Ripple and the SEC?

The denial of the indicative ruling puts the ball back in the court of Ripple and the SEC to restructure their filing or pursue a different procedural route. Both parties remain publicly committed to finalizing the settlement. However, timelines may now stretch further into Q3 2025, adding uncertainty for investors and delaying long-awaited clarity on enforcement precedent.

Ripple Case Signals Broader Regulatory Impasse

The case continues to symbolize broader tensions between the crypto industry and U.S. regulators. While Ripple scored a major victory in July 2023 that differentiated retail and institutional sales, the SECs reluctance to drop the caseand the courts strict adherence to procedural formalitieshighlight the lack of clear frameworks for crypto settlements.

For now, XRP holders and the broader crypto market are left in limbo. The deal may not be dead, but its certainly delayedand in crypto, time is money.

The post Judge Blocks $75M XRP Settlement Deal: Ripple Case Faces Fresh Delay Amid Legal Twist appeared first on CryptoNinjas.