The settlement agreement between Ripple and SEC faces legal hurdles.

2025-05-16 00:15:40

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There has been a new development in the ongoing lawsuit between Ripple and the Securities and Exchange Commission of the United States (SEC). The request for resolution of 50 million dollars submitted by both parties has been dismissed by Judge Analisa Torres on procedural grounds. Judge Torres has rejected the parties’ motion for a declaratory judgment, stating that it “has procedural flaws,” according to attorney James K. Filan. Torres indicated that he does not have the authority to intervene in the case at this time because the appeals process is still ongoing, and he would dismiss this motion even if the court restored jurisdiction. The parties filed under the Federal Code of Civil Procedure 62.1, which is used when a case is being appealed. However, since the nature of the application is to overturn the final judgment issued earlier, the application must be filed under Rule 60. In other words, Ripple and the SEC didn’t file as per the rules. Moreover, they do not give any good reason to support such requests, such as “special circumstances”. “Today’s decision does not change anything that Ripple has won (, such as the ruling that XRP is not a security ). This is merely a procedural matter related to Ripple’s withdrawal of the cross-appeal. Ripple and the SEC fully agree to end the lawsuit and will revisit this issue with the court,” Ripple’s legal director Stuart Alderoty said in a statement. The general agreement requirements include: Ripple’s $125 million fine is reduced to $50 million. The ban on potential future violations is lifted. The remaining amount is refunded to Ripple. This ends all calls. There are three possibilities for Ripple: Re-submit the complaint in accordance with legal regulations (Rule 60)Break down the requests and only request a reduction of the fineContinue the appeal process and wait for the final decision Currently, Ripple still has to face a fine of 125 million dollars and the previous injunction remains in effect.

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