XRP Update: Ripple Vs SEC $50M Deal Denied, What’s Next in the SEC Lawsuit?

What seemed like a coordinated step towards closure has been hit a major legal roadblock. On May 8, Judge Lisa Torres denied Ripple and the SEC’s joint request for an indicative ruling that would have advanced settlement talks. The motion, aimed at easing XRP sale restrictions also sought to relax Ripple’s penalty from $125M to $50M.

However, the judge denied citing failure in adhering procedural legal process. The court emphasized that procedural precision is non-negotiable, especially in a case with national regulatory implications.

Ripple vs SEC- Recap 

The Ripple-SEC standoff began in 2020 when the SEC sued the firm over XRP’s status as a security.  Ripple disputed the claim, and in 2023, the court ruled that XRP is not a security when traded on public exchanges—a partial win for the company.

In 2024, the firm was handed a steep penalty, and both parties appealed. In an unexpected shift this year, the two parties reached a settlement agreement, but their request to pause the appeals and implement the deal has ended in a curveball. Judge Torres denied the motion, saying it failed to meet the criteria of Rule 60 specifically.

Importantly, the court’s denial was purely procedural and did not reflect any disagreement with the substance of the settlement. Still, the motion didn’t justify why an exception should be made for now. The appeal remains on hold, but the case is far from over.

What’s Next for Ripple & XRP

The denial halted progress. Attorney Bill Morgan explained that both sides had signed the agreement, paused the appeals, and requested an indicative ruling. They would have asked the appeal court for a limited remand to close the case if approved. That plan is now on hold. 

Source: Fabio Zuccara

Ripple’s Chief Legal Officer, Stuart Alderoty, reassured the community: “Nothing in today’s order changes Ripple’s wins (i.e., XRP is not a security, etc). This is about procedural concerns with the dismissal of Ripple’s cross-appeal. Ripple and the SEC fully agree to resolve this case and will revisit this issue with the Court, together.”