$XRP Slides as Ripple-SEC Deal Hits Procedural Snag

$XRP saw a sharp decline after a U.S. federal court dismissed a proposed settlement between Ripple Labs and the SEC. The motion, filed on May 8, was tossed out for not aligning with Rule 60 of the Federal Rules of Civil Procedure—a procedural technicality that halted the deal from moving forward.

The proposed agreement aimed to reduce Ripple’s $125 million penalty down to $50 million, a compromise both sides had accepted in an attempt to close their long-standing legal battle.

Though the court’s rejection is a setback, legal analysts believe it’s a fixable issue. A correctly filed motion is expected to follow soon.

Ripple’s Chief Legal Officer, Stuart Alderoty, emphasized that the dismissal doesn’t impact previous victories—most notably the 2023 ruling that XRP isn’t considered a security in programmatic sales.

Still, the market didn’t take the news lightly. XRP dropped more than 7%, open interest fell 9.4% to $4.93 billion, and over $21 million in long positions were liquidated—signs of growing trader anxiety.

At present, XRP is trading near $2.42, reflecting the ongoing uncertainty.

This legal battle isn’t over yet, and the next moves from Ripple and the SEC will be closely watched.

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