- Judge denies Ripple and SEC’s joint settlement motion impacting XRP.
- Rejection focuses on procedural non-compliance.
- Settlement required 60% penalty reduction.
Judge Analisa Torres recently denied a joint motion by Ripple and the SEC seeking an indicative ruling on their proposed settlement agreement, impacting the ongoing case.
The motion’s denial affects XRP’s market standing, highlighting procedural issues rather than the agreement’s substance.
Judge Rejects Ripple’s 60% Penalty Reduction Deal
Judge Analisa Torres denied a joint motion from Ripple and the SEC on May 15-16, 2025. The motion originally sought court approval for a settlement that reduced Ripple’s penalty by 60%.
The court’s rejection was influenced by procedural matters. The joint motion, filed in early May, didn’t comply with Rule 60, which addresses the modification of final court decisions. As Judge Torres stated, “even if it had the power to decide on the matter right now, it would reject the request because it didn’t follow the correct legal process”.
Denial Extends Uncertainty for XRP Investors
The denial leads to prolonged uncertainty for XRP, further affecting its market dynamics. Investors remain cautious due to the lack of resolution in the ongoing legal case.
The procedural focus of the refusal delays financial relief for Ripple. Negotiations may continue, but substantial obstacles remain before any agreement is formalized. This development suggests that while Ripple and the SEC have reached a settlement agreement in principle , the legal process to implement this agreement will take additional time and potentially require revised filings.
Historical Precedents Stress Procedural Integrity
Historically, similar SEC cases have focused on procedural integrity. Ensuing decisions often reflect strict adherence to regulatory frameworks, echoing past cases.
Potential outcomes include continued litigation or revised filings. Analysis of trends suggests lasting impacts on Ripple’s strategic decisions and broader investor behavior.
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