Ripple and the U.S. Securities and Exchange Commission (SEC) hit another legal bump this week, but it’s not as dramatic as some headlines made it seem. On May 15, Judge Analisa Torres denied the joint motion by Ripple and the SEC that aimed to finalize a settlement and reduce Ripple’s civil penalty from $125 million to $50 million. The motion also requested that the court lift an earlier injunction barring Ripple from selling XRP to institutional investors.
But this wasn’t about whether Ripple did something wrong or not. The judge made it clear that the motion was denied purely on procedural grounds. In her order, she wrote that even if the court had jurisdiction, the request would be denied because it didn’t follow the correct legal process under Rule 60 of the Federal Rules of Civil Procedure. That rule requires parties to show “exceptional circumstances” to modify a final judgment, and the court found that Ripple and the SEC didn’t meet that standard.
Following the ruling, Ripple’s Chief Legal Officer Stuart Alderoty stepped in to clarify the situation. In a post on X, he said that nothing about the judge’s order changes Ripple’s previous wins in the case. He reminded the community that XRP is still not considered a security, and that this recent denial has no effect on that crucial outcome. According to Alderoty, this issue is about process, not substance. He emphasized that both Ripple and the SEC remain in full agreement to resolve the matter and will revisit the issue together through the proper legal channels.
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 are fully in agreement to resolve this case and will revisit this issue with the Court, together. https://t.co/vBQdBD3FNe
— Stuart Alderoty (@s_alderoty) May 15, 2025
The court documents support this. The judge didn’t criticize the idea of a settlement or the reduction of the penalty. She simply said the motion wasn’t filed correctly and didn’t satisfy the legal threshold to reopen a closed judgment. In legal terms, it was a technical rejection, not a rejection of the substance.
Ripple and the SEC had previously agreed to settle the case by reducing the fine to $50 million, to be paid from funds Ripple already deposited into an interest-bearing account. They also sought to vacate the injunction, which was part of the original final judgment issued in August 2024. Now, if they want the court to approve those terms, they’ll have to refile the motion with a stronger legal basis, likely under Rule 60, and explain why the changes are justified.
Despite the court’s denial, the mood from Ripple’s side is calm. Alderoty’s public statement helped stabilize sentiment in the XRP community, which had briefly reacted with concern. The XRP price dipped slightly following the news, but there was no panic selloff. Most analysts believe that the parties will resolve this procedural hiccup quickly and resubmit the motion in a way that satisfies the court.
In short, the legal win that Ripple scored in 2023, when the court ruled XRP is not a security in general sales, still stands. The current delay is just a matter of paperwork and legal framing. Both Ripple and the SEC are on the same page about how they want the case to end, and now it’s just a matter of getting the court to sign off on it the right way.
So for XRP holders watching closely, nothing has really changed. The path to final closure may take a few more legal steps, but the destination is still within reach.
Read also: Ripple (XRP) vs. Hedera (HBAR): Which Could Gain the Most in 2025?
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