Judge Denies Ripple-SEC Motion, $125M Penalty Stands

Ripple’s latest price was $, in the last 24 hours. The cryptocurrency market has seen significant developments recently, particularly for Ripple and its native token, XRP. Judge Analisa Torres denied Ripple and the SEC’s joint motion to modify their settlement, citing procedural flaws under Rule 60 of the Federal Rules of Civil Procedure. This denial leaves Ripple’s $125 million penalty and the ban on institutional XRP sales in place. The motion, filed on May 8, sought to amend key terms of the previously agreed-upon settlement, including lifting the permanent injunction on Ripple’s institutional XRP sales and reducing the civil penalty. However, Judge Torres dismissed the motion on May 15, stating it failed to meet the procedural standards required under Rule 60, which governs relief from final judgments. The motion had instead relied on Rule 62.1, which allows a judge to issue an indicative ruling when a case is under appeal. Judge Torres made it clear that the motion would still be denied even if jurisdiction were restored from the appellate court.

Legal expert Bill Morgan raised six unresolved questions following the denial of the joint motion. Morgan posted a detailed legal analysis on X, identifying six unanswered questions that now cloud the path forward for Ripple and the SEC. His reflections center on the validity of the settlement, procedural compliance, and the SEC’s internal governance. Among the most pressing concerns are whether the parties can refile under Rule 60 and if doing so would require a fresh vote by the SEC’s five commissioners. Additionally, Morgan questions whether the failure to obtain an indicative ruling nullifies the settlement or if it can still be upheld based on the original recitals. He also suggests that the use of Rule 62.1 may have been a calculated move to bypass the difficulty of proving “exceptional circumstances” under Rule 60. Morgan’s analysis implies that experienced legal teams from both Ripple and the SEC would not overlook such a critical procedural rule, indicating a potential strategic move to avoid the higher threshold required under Rule 60.

Ripple’s Chief Legal Officer, Stuart Alderoty, clarified that Judge Torres’ denial is procedural and does not affect Ripple’s prior legal victories, including the July 2023 ruling that XRP is not a security. He emphasized that Ripple and the SEC remain aligned in seeking resolution and plan to refile under the appropriate legal framework. The failure of the joint motion means the $125 million penalty remains in place, and the ban on institutional XRP sales still stands, at least for now.

Ripple Impact has launched its second pilot of the year in partnership with Mercy Corps Ventures and WËIA. This new initiative is being carried out as part of the “Unlocking Opportunity” program, which seeks to strengthen Colombian smallholder farmers by helping them earn more money and become financially included. The project relies on the XRP Ledger (XRPL) and its blockchain technology to enable this achievement. The pilot aims to address various issues affecting Colombia’s agriculture sector, including the lack of formal agreements and adequate information about financial activities, which often prevent small farmers from accessing financial services. Additionally, the pilot seeks to combat food fraud, which is estimated to be valued at around $50 billion annually. The XRPL plays different roles in this project, including monitoring the journey of farm products from the seeds being planted to the moment they are harvested, ensuring security, fast speed, affordability, and no harm to the environment. The system also makes it easier for farmers to work with those who provide inputs and sell their products, giving farmers higher earnings and improving their regular deals with traders. WËIA is offering assistance to farmers through a “Farm Now, Pay Later” plan, allowing farmers to pay for seeds and fertilizers after using them, so they can get the goods before paying. They will be able to pay back the loan through the profit from what they sell. This system is based on the blockchain data collected through the XRPL. Around 300 smallholder farmers are taking part in the pilot, processing approximately 240 tonnes of panela per month. Notably, 46% of the farmers are female, demonstrating the importance of gender inclusion. The goals of the pilot are to check if verified sustainability data can raise the prices of its products, review whether using the XRPL makes retailers more satisfied with the tracing process, and look at whether there is an increase in formal agreements between farmers and buyers by the end of the pilot. Overall, Ripple, Mercy Corps, and WËIA plan that this project will assist Colombian farmers by giving them more tools, a connection to markets, and more money. If implemented successfully, it has the potential to improve farming worldwide using blockchain.

An influential commentator within the XRP community recently outlined why Ripple has a vested interest in seeing the price of XRP rise considerably. According to the “All Things XRP” account, XRP’s growth is not a mere advantage but essential to Ripple’s long-term viability and strategic goals. Despite recent speculation that Ripple’s focus may be shifting toward its stablecoin, RLUSD, XRP continues to play a critical role in its operations. Ripple currently holds approximately 42.5 billion XRP tokens, representing a substantial financial asset. The company can generate significant capital by releasing portions of these tokens, providing a non-dilutive revenue source to fund daily operations, acquisitions, and international expansion. For instance, unlocking one billion XRP monthly could yield billions of dollars, a vital resource as Ripple expands its enterprise offerings. Ripple’s payment solutions rely on XRP to facilitate cross-border transfers. A higher XRP price enhances liquidity, making transactions faster and less costly, as fewer tokens are required to complete transfers. This improved efficiency positions Ripple to attract major institutional clients, including well-known financial firms like American Express and Standard Chartered. Ripple wants to replace outdated systems such as nostro and vostro accounts with real-time settlements powered by XRP, thereby reducing friction in large-value international payments. The value of XRP directly impacts the health and expansion of Ripple’s ecosystem. Ripple invests in ecosystem projects such as Coil and Keyless, which benefit from a thriving token market that attracts developers, decentralized applications (dApps), and users. A more active network increases transaction volume and fees, strengthening Ripple Payments to support its financial sustainability. As XRP’s market value rises, it becomes increasingly attractive to venture capitalists, institutional investors, and ETF issuers. The recent filing of an XRP ETF by WisdomTree for 2025 indicates growing institutional confidence. Moreover, the token’s price performance can indicate the network’s health and technological robustness. This strengthens Ripple’s reputation beyond being just another cryptocurrency, positioning it as a serious player in enterprise financial infrastructure. Ripple leverages XRP to distinguish itself from competitors like SWIFT and Stellar in the competitive space of global payment solutions. A strong XRP price matches the competition and provides Ripple with a performance advantage that supports faster and more scalable growth. Additionally, a widely adopted and valuable token is less susceptible to regulatory risks, enhancing XRP’s case for legitimacy in the financial industry. The analysis shared by “All Things XRP” echoes a growing consensus within the community. They believe Ripple’s success is closely linked to XRP’s market performance. Far from diminishing XRP’s importance, the company appears to rely on its rising price to fund its operations and support its expansion plans, countering concerns that Ripple might favor its stablecoin over XRP. XRP was designed to streamline cross-border payments and settle transactions quickly — features that made it attractive to banks and institutions. But for retail investors, the value proposition has become harder to define. With no native staking, limited DeFi integration, and a token model tied to Ripple’s legal and corporate decisions, XRP holders are left relying on price appreciation alone.