Ripple-SEC Settlement Blocked by Judicial Barrier: Judge Rejected the Settlement! What Will Happen to XRP Now? A Statement Has Arrived

A new development has occurred in the long-standing case between Ripple and the U.S. Securities and Exchange Commission (SEC). The $50 million settlement proposal submitted by both parties in agreement was rejected by Judge Analisa Torres for procedural reasons.

According to lawyer James K. Filan, Judge Torres rejected the parties' request for an "indicative ruling" as "procedurally erroneous." Torres stated that he currently does not have the authority to intervene in the case due to the ongoing appeal process, and even in the event of a remand, he would deny the current request.

The parties made a request under Federal Rule of Civil Procedure 62.1 in situations where the case is on appeal. However, the essence of the request involved the invalidation of a previously issued final judgment, so it should have been made under Rule 60. In other words, Ripple and the SEC did not apply under the correct rule. Moreover, they did not provide any reasons supporting such requests, which are categorized as "extraordinary circumstances."

Ripple's Chief Legal Officer Stuart Alderoty stated regarding the decision, "Today's ruling does not change anything Ripple has won, for example, the ruling that XRP is not a security (. This is merely a procedural matter regarding the withdrawal of Ripple's cross-appeal. Ripple and the SEC are completely in agreement on concluding the case, and they will revisit this issue with the court."

The joint agreement request included the following:

• The fine of 125 million dollars imposed on Ripple has been reduced to 50 million dollars.
• Cancellation of the precautionary decision against possible future violations
• The remaining money will be refunded to Ripple.
• The termination of all appeal applications

There are three possibilities ahead for Ripple:

• Resubmit the request with the correct legal rule )Rule 60(
• Requesting only a reduction of the fine by splitting the demands.
• Continuing the appeal process and awaiting the final decision

For now, Ripple is maintaining its $125 million penalty obligation, and the previously issued injunction remains in effect.