Ripple: Judge’s settlement rejection has no effect on legal victory

Ripple’s legal victory over the SEC, announced in March 2025, faced a procedural setback on May 15th. Judge Analisa Torres rejected a joint motion from Ripple and the SEC seeking an indicative ruling on their proposed settlement, deeming the motion “procedurally improper.” The court’s decision stems from the parties’ failure to file the correct procedural motion to vacate the injunction and reduce the civil penalty. The judge noted the lack of effort to address the substantial burden required for such a request.

Despite the rejection, Ripple’s Chief Legal Officer, Stuart Alderoty, maintains that the court’s decision does not overturn their win, emphasizing that it relates to procedural aspects of their cross-appeal dismissal. He reiterated that XRP remains classified as not being a security. The original $125 million fine was reduced as part of the settlement, with the SEC retaining $50 million.

Alderoty’s assurances, however, have not fully satisfied the XRP community. Many express dissatisfaction with the lack of transparency regarding the procedural issues. Critics point to conflicting statements from Ripple executives declaring the case closed, questioning the clarity and openness of communications surrounding the ongoing legal process. Speculation abounds about the reasons behind the court’s rejection, with some suggesting a lack of adherence to established legal procedure.

The situation unfolds against a backdrop of broader political and industry debates. Allegations of Ripple-linked lobbying influencing President Trump’s potential cryptocurrency reserve plans have fueled criticism, particularly from the Bitcoin community. These claims further complicate the narrative surrounding Ripple’s legal battle and its broader implications for the cryptocurrency landscape. The ongoing complexities underscore the challenges and uncertainties inherent in the evolving regulatory framework for digital assets.