$XRP collapses after judicial rejection of the agreement between Ripple and the SEC due to technical ruling. ⬇️
In an unexpected turn, the XRP token suffered a notable drop after a federal court in the United States rejected the proposed settlement between Ripple Labs and the Securities and Exchange Commission (SEC) ❌. According to the ruling, the joint motion was deemed invalid for not complying with the requirements of Rule 60 of the Federal Rules of Civil Procedure ⚠️.
The motion, filed on May 8, sought to annul an existing restraining order and reduce the penalty imposed on Ripple from $125 million to $50 million. Both parties had agreed to this modification as part of their efforts to close their prolonged legal conflict.
However, the court dismissed the document for procedural reasons, temporarily halting the progress of the agreement. Legal experts indicate that it was a technical error and that Ripple and the SEC will likely refile the motion properly soon.
Despite this setback, Ripple's Legal Director, Stuart Alderoty, reaffirmed that this decision does not affect previous rulings, including that of 2023, which declared that XRP is not considered a security in scheduled sales ✅.
The impact on the market was immediate: the price of XRP plummeted over 7%, while open interest dropped by 9.4%, standing at $4.93 billion 📉. Additionally, more than $21 million in long positions were liquidated, reflecting the growing uncertainty among investors.
Currently, XRP trades near $2.42, a clear sign of the nervousness that continues to affect the crypto ecosystem.
The legal battle between Ripple and the SEC is not over yet... and every move remains crucial ⚔️