XRP price drops after a U.S. court rejects a settlement between Ripple and the SEC due to a procedural flaw ⚖️📉. Suddenly, XRP faced a sharp decline after a U.S. federal court rejected a joint settlement between Ripple Labs and the Securities and Exchange Commission (SEC) ❌. The court ruled that the request was procedurally unsound for failing to comply with Rule 60 of the Federal Rules of Civil Procedure ⚠️.
The request, submitted on May 8, aims to overturn a previous injunction and reduce Ripple's fine from $125 million to $50 million 💵. Both Ripple and the SEC agreed to this modified deal as part of ongoing efforts to resolve their long-standing legal dispute.
However, the court's rejection means that the settlement cannot move forward - at least not yet. Legal experts say the issue was a technical error, and both parties are likely to resubmit the request correctly soon 📝.
Despite this setback, Ripple's Chief Legal Officer, Stuart Aldrich, confirmed that this does not affect previous legal gains, including a 2023 ruling that XRP is not a security in scheduled sales ✅.
However, the market's reaction was swift. The price of XRP dropped by more than 7%, with open positions decreasing by 9.4% to $4.93 billion.
