On May 15, 2025, Judge Analisa Torres of the United States District Court for the Southern District of New York denied the joint motion filed by the SEC and Ripple.

In this motion, both parties sought an indicative resolution to lift the injunction prohibiting the sales of $XRP

to institutional investors and to reduce the civil fine imposed on Ripple from $125 million to $50 million, as part of a settlement agreement.

Judge Torres ruled that the motion was "procedurally improper," as it was presented as a request for approval of an agreement, but was actually a request for relief from the final judgment of August 2024. According to the judge, to modify a final judgment, the parties must file a motion under Rule 60 of the Federal Rules of Civil Procedure and demonstrate "exceptional circumstances," which was not done in this case.

What does this mean?

* The proposed settlement agreement between the SEC and Ripple, which involved a reduced fine and the lifting of the injunction, has been blocked for the time being.

* The injunction prohibiting Ripple from making sales of XRP to institutional investors remains in effect.

* The $125 million fine imposed on Ripple remains in effect, despite the proposed settlement agreement.

* The legal case remains in limbo, awaiting new procedural movements from the SEC and Ripple.

Parties' reaction:

* Ripple's Legal Director, Stuart Alderoty, stated that the judge's decision relates to procedural issues regarding the dismissal of Ripple's cross-appeal, and that Ripple's previous legal victories (that XRP is not a security) are not affected. He also mentioned that Ripple and the SEC will revisit this matter before the court.

Judge Torres rejected the SEC and Ripple's attempt to modify the final judgment through a settlement agreement, meaning the case continues with the original injunction and fine in place for the time being.

🔺From the perspective of Ripple and those hoping for a quick and favorable resolution, this news leans more towards the negative in the short term.

Here's why:

* The settlement agreement is stalled: The main goal of the joint motion was to finalize the most contentious part of the litigation (institutional sales and the fine) through an agreement. The judge's rejection means that this quick path to resolution has been blocked.

* The injunction remains: Ripple is still prohibited from making sales of XRP to institutional investors, which is a significant limitation for its business and for regulatory clarity of the asset.

* The larger fine remains in effect: Although Ripple wanted to significantly reduce the fine, for now, the obligation to pay the $125 million persists.

* Ongoing uncertainty: The judge's decision prolongs regulatory uncertainty surrounding XRP in the United States, which may affect its adoption and price.

However, some nuances can also be considered:

* Procedural issues: The judge's rejection was based on procedural issues (the way the motion was presented), not necessarily on the substance of the agreement itself. Ripple and the SEC could attempt to address this by filing a motion under Rule 60 as the judge suggested.

* Previous legal victory intact: As noted by Ripple's Legal Director, the judge's decision does not overturn the previous ruling that XRP is not inherently a security. This remains an important victory for Ripple.

* The path is not closed: That the judge pointed out the correct procedure suggests that a settlement could still be possible if presented in the appropriate manner.

🔺For investors and the company Ripple, the news that the judge rejected the joint motion is primarily disappointing in the short term. It means that the expected resolution is delayed, the restrictions and fine remain in place, and uncertainty persists. However, it does not completely close the door to a future settlement, although the path now seems more complicated and will require new legal steps.