On May 8, the resolution to the long-standing court case between Ripple Labs and the Securities and Exchange Commission (SEC) appeared to be writing its last pages, with only formal court approval standing in the way of a $50 million settlement.
But on May 15, Judge Analisa Torres blocked the deal on procedural grounds, stating that the filing was scheduled under Rule 60, which would require demonstrating ‘exceptional circumstances.’ According to the Judge, no such circumstances are present, rendering the motion ‘procedurally improper.’
If jurisdiction were restored to this Court, the Court would deny the parties’ motion as procedurally improper.
The proposed deal was a compromise that would help the SEC change course in its approach to cryptocurrency regulation while reducing the amount Ripple Labs is forced to pay by 60%, from $125 million to $50 million.
Ripple court case May 2025
The latest Ripple lawsuit update saw the rejection on procedural grounds indicates that the deal will eventually be implemented, particularly as Stuard Alderoty, the blockchain company’s Chief Legal Officer, highlighted that both Ripple and the regulator remain committed to resolving the case.
He also emphasized that the firm’s previous victories, such as the clarity that XRP is not a security, have not been invalidated:
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.
The SEC’s last Ripple court case appeal filed before Gary Gensler’s departure likewise didn’t argue that XRP was a security but that the contracts used to sell the token were.
XRP price reacts to court decision
The court’s rejection has cast some uncertainty, with XRP’s price dropping to $2.43 by May 16, despite the prior 23.81% climb between the May 8 deal proposal announcement and the May 14 high above $2.60.
Lastly, the rejection could exacerbate the correction that began shortly after the May 14 high, and has already increased the token’s volatility.
Featured image via Shutterstock
