Judge Rejects SEC and Ripple's Bid to Rework XRP Settlement
A federal judge denied a joint request from the SEC and Ripple Labs to approve their settlement due to procedural errors. U.S. District Judge Analisa Torres stated that the motion was “procedurally improper” and highlighted that jurisdiction rested with the Second Circuit, where both parties had filed cross-appeals. The SEC and Ripple had sought an indicative ruling to dissolve Ripple’s injunction and reduce its fine from $125 million to $50 million. The recent filing bypassed Rule 60 of civil procedure, failing to demonstrate the required “exceptional circumstances.” The lawsuit began in December 2020, with the SEC accusing Ripple of raising $1.3 billion through unregistered XRP sales. In July 2023, Judge Torres ruled that institutional sales violated securities laws, while retail sales did not. The SEC confirmed the $50 million deal, with Ripple set to pay the reduced fine. XRP's value increased by 366% over the past year but fell 1.6% to $2.42 on the day of the ruling.
