Ripple's attempt to end its long dispute with the U.S. Securities and Exchange Commission hit a snag on May 15. A federal judge in New York rejected the settlement because it was improperly filed. This setback does not alter previous decisions but forces both parties to start over.#BinanceAlphaAlert
According to court documents, Judge Analisa Torres ruled that Ripple and the SEC used the wrong rule to request a change. They tried to dissolve an injunction and reduce a $125 million fine to $50 million. However, under Rule 60, it is necessary to prove 'exceptional circumstances' when requesting a review of a final order. Without this proof, the judge deemed the motion 'improper' and rejected it. Nothing in today’s order alters Ripple's victories (i.e., XRP is not a security, etc.). This refers to procedural concerns regarding the rejection of Ripple's cross-appeal.#DinnerWithTrump
Based on reports from attorney James Filan, Ripple and the SEC agreed to the settlement on May 8. They even filed documents together, but skipped the part of showing why they should get a new chance. Now, both parties need to draft a new motion. Fred Rispoli, another attorney, stated that they will have to 'do it the hard and complicated way' following the rulebook, which means explaining why a final court decision needs to be revisited.#XRPRealityCheck
When the news spread, XRP took a hit. The price fell about 2.5% in a single day. Open interest also dropped 9% to $4.90 billion, according to data from CoinGlass. Long positions worth over $21 million were liquidated as traders rushed to cut losses. Short-term traders are watching a key support level at $2.35. If this line holds, we may see a recovery. If it breaks, prices could drop further.$XRP
Ripple's legal director, Stuart Alderoty, reminded everyone that past victories are secure. In 2023, a judge ruled that XRP was not a security in programmatic sales. Institutional sales still count as securities, but retail sales have been cleared. Alderoty stated that this recent setback is only about 'procedural concerns regarding the rejection of Ripple's cross-motion.' He made it clear that nothing in this decision undermines what Ripple has already achieved.
Now, both parties face a longer road ahead. They will need to gather evidence for a new motion under Rule 60. This may push any final agreement to late summer or beyond. Until then, traders will keep an eye on court schedules and price charts.
