Error in legal procedures and it will be legally rephrased and presented to the court again and the case will be closed
FinancialAdvisor8806
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Bearish
Big News For Ripple (XRP) Holders!!!
Ripple’s effort to settle with the U.S. Securities and Exchange Commission was stopped because a federal judge said their joint request was not done correctly.
The judge’s decision came from Judge Analisa Torres of the U.S. District Court for the Southern District of New York on May 15. Attorney James Filan shared the news on X and posted the court documents. He noted that Judge Torres rejected the parties’ request for an indicative ruling. The request was seen as “procedurally improper” because it wasn’t filed under Rule 60, which needs proof of special circumstances to change a final ruling.
The rejected request, made on May 8, wanted to remove an injunction and lower a $125 million civil penalty to 50 million. Both Ripple and the SEC had agreed to this deal to help settle the case during ongoing appeals. However, the judge's decision blocks that plan unless the request is filed correctly.
Ripple’s chief legal officer, Stuart Alderoty, informed the crypto community that the court’s denial does not change the company’s earlier legal wins, including the 2023 ruling that said XRP is not a security in programmatic sales.
“This is about procedural issues with the dismissal of Ripple’s cross-appeal,” he posted on X, stressing that Ripple and the SEC want to resolve the case.
The SEC sued Ripple in 2020 for allegedly selling XRP as an unregistered security, leading to a long legal battle. However, it was ruled that retail sales did not break security laws.
The delay has impacted market sentiment. XRP dropped about 7% in the last day, while data shows a 9.4% decrease in open interest to 4.93 billion. After the court’s ruling, traders liquidated long positions worth over 21 million. Traders are now watching closely to see XRP’s next move as it tests support at 2.
