Settlement Hopes Dashed in Court
In a stunning turn of events, U.S. District Judge Analisa Torres has rejected a joint motion by Ripple Labs and the SEC to revise the terms of their ongoing legal battle. The parties had sought to cut Ripple’s $125 million civil penalty to $50 million and dissolve a permanent injunction against future securities violations.
The request, submitted as a motion for settlement approval, was treated by the court as a motion for relief from final judgment—a much tougher legal standard governed by Rule 60 of the Federal Rules of Civil Procedure.
Judge Torres: “You Need More Than Just an Agreement”
Judge Torres pointed out that neither Ripple nor the SEC cited Rule 60 in their filing or attempted to argue that the required threshold had been met. Instead, they mischaracterized their motion as a basic settlement request, ignoring the fact that a final judgment from August 2024 is still in force. That ruling found Ripple guilty of violating the Securities Act by selling XRP as an unregistered security to institutional investors. It also imposed the $125 million fine and prohibited Ripple from repeating similar conduct.
#XRPCommunity #SECGov v. #Ripple #XRP Judge Torres has denied the parties’ motion for an indicative ruling. “If jurisdiction were restored to this Court, the Court would deny the parties’ motion as procedurally improper.” pic.twitter.com/4s95ILvzsy
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) May 15, 2025
#XRPCommunity #SECGov v. #Ripple #XRP Judge Torres has denied the parties’ motion for an indicative ruling. “If jurisdiction were restored to this Court, the Court would deny the parties’ motion as procedurally improper.” pic.twitter.com/4s95ILvzsy
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) May 15, 2025
Ripple Responds: “This Changes Nothing”
Despite the court’s rejection, Ripple’s Chief Legal Officer Stuart Alderoty downplayed the impact of the decision.
Alderoty also confirmed that both Ripple and the SEC remain on the same page about resolving the case and plan to refile their motion correctly—this time under Rule 60, along with evidence of the “exceptional circumstances” required to lift the standing judgment.
What’s Next?
This development means Ripple is still on the hook for the full $125 million fine, and the court order blocking it from selling XRP to institutional investors in violation of securities laws remains in place.
The setback is not final, however. Both parties now have a roadmap: refile under Rule 60 and build a case for why the previous ruling should be amended. But that’s no easy task. Rule 60 relief is rare and often reserved for extraordinary situations, such as clear legal error, fraud, or new evidence.
Legal analysts say this case could still conclude with a revised agreement—but only if Ripple and the SEC can properly navigate the procedural hurdles.
