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Ripple’s bid to wrap up its long‑running fight with the US Securities and Exchange Commission hit a snag on May 15. A federal judge in New York tossed out the deal because it was filed the wrong way. This hiccup doesn’t change past rulings, but it does force both sides back to the drawing board.
Court Blocks Settlement Motion
According to court papers, Judge Analisa Torres ruled that Ripple and the SEC used the wrong rule to ask for a change. They tried to dissolve an injunction and chop a $125 million fine down to $50 million. But under Rule 60, you need to prove “exceptional circumstances” when you’re asking to revisit a final order. Without that proof, the judge said the motion was “procedurally improper” and tossed it.
Nothing in today’s order changes Ripple’s wins (i.e. XRP is not a security, etc). This is about procedural concerns with the dismissal of Ripple’s cross-appeal. Ripple and the SEC are fully in agreement to resolve this case and will revisit this issue with the Court, together. https://t.co/vBQdBD3FNe
— Stuart Alderoty (@s_alderoty) May 15, 2025
Source: US District Court Southern District NY/SEC.
Parties Must Refile Under Rule 60
Based on reports from attorney James Filan on X, Ripple and the SEC agreed on the deal back on May 8. They even filed papers together. Yet, they skipped the part about showing why they should get a do‑over.
Now, both sides have to write up a new motion. Fred Rispoli, another lawyer, said they’ll have to “do it the hard, messy way” by following the rule book. That means spelling out why a final court decision needs a second look.
Market Reacts With Price Drop
When word got out, XRP took a hit. The price slid about 2.5% in a single day. Open interest also fell by 9% to $4.90 billion, according to CoinGlass data. Long positions worth over $21 million were wiped out as traders scrambled to cut losses. Short‑term traders are watching a key support level at $2.35. If that line holds, we might see a bounce. If it breaks, prices could dip even further.
XRP price down in the last 24 hours. Source: Coingecko
Legal Wins Remain Intact
Ripple’s chief legal officer, Stuart Alderoty, reminded everyone that past victories are safe. In 2023, a judge ruled that XRP wasn’t a security in programmatic sales. Institutional sales still count as securities, but retail sales were cleared.
Alderoty said on X that this recent setback is just about “procedural concerns with the dismissal of Ripple’s cross‑appeal.” He made it clear that nothing in that ruling takes away what Ripple already won.
Next Steps For Ripple And SEC
Now, both sides face a longer road ahead. They’ll need to gather evidence for a new Rule 60 motion. That could push any final settlement into late summer or beyond. Until then, traders will keep their eyes on court calendars and price charts.
Featured image from Bankless Times, chart from TradingView
