Ripple's XRP Rises 0.59% Amid SEC Legal Battle Setback

XRP's latest price was $2.38, up 0.59% in the last 24 hours. The cryptocurrency XRP, backed by Ripple, has been at the center of a protracted legal dispute with the U.S. Securities and Exchange Commission (SEC) regarding the classification of XRP as a security. This legal battle has been ongoing for several years, with both parties presenting arguments and evidence to support their respective positions. The SEC has maintained that XRP should be classified as a security, while Ripple has argued that it is a currency and not subject to securities regulations.

On May 15, 2025, a federal judge in New York dismissed a joint request from Ripple and the SEC to approve their $50 million settlement, which would have brought their years-long legal fight to a close. Judge Analisa Torres ruled that the motion was "procedurally improper" because it did not meet the requirements of Rule 60, which governs the process for seeking a reopening of a final judgment. The judge stated that the parties had not provided sufficient evidence to support their request for a do-over, and that the motion was therefore invalid.

Despite this setback, Ripple's chief legal officer, Stuart Alderoty, emphasized that the company's past legal victories remain intact. In 2023, a judge ruled that XRP was not a security in programmatic sales, although institutional sales were still considered securities. Alderoty noted that the recent dismissal was solely related to procedural concerns and did not affect Ripple's previous wins. He also indicated that both parties are committed to resolving the case and will revisit the issue with the court together.

Following the dismissal, both Ripple and the SEC will need to refile their motion under Rule 60, which requires them to provide evidence of "exceptional circumstances" to justify revisiting the final judgment. This process is expected to take several months, potentially pushing any final settlement into late summer or beyond. In the meantime, traders and investors will continue to monitor the legal developments and their potential impact on the cryptocurrency market.

The legal battle between Ripple and the SEC has significant implications for the broader cryptocurrency industry. The outcome of the case could set a precedent for how other digital assets are classified and regulated in the United States. If XRP is ultimately deemed not to be a security, it could pave the way for greater acceptance and adoption of cryptocurrencies as a legitimate form of currency. Conversely, if the SEC prevails, it could lead to increased regulatory scrutiny and potential restrictions on the use and trading of digital assets.

In addition to the legal developments, there has been ongoing speculation about the potential for a bullish continuation pattern in XRP's price movement. Some analysts have identified a possible formation of a bull pennant, which is characterized by a sharp upward price movement followed by a period of consolidation within a narrow range. If this pattern completes, it could indicate that XRP is poised for further upward movement. However, it is important to note that price predictions are inherently uncertain and should be approached with caution.

Despite the recent price volatility, long-term holders of XRP appear to remain confident in the cryptocurrency's potential. Exchange reserves of XRP have remained stable, suggesting that investors are not rushing to sell their holdings in response to short-term price fluctuations. This stability in exchange reserves is seen as a positive sign for the long-term prospects of XRP, as it indicates that holders are committed to holding their positions over the long term.

In conclusion, the legal battle between Ripple and the SEC continues to be a significant factor in the cryptocurrency market. The recent dismissal of the joint settlement request has added another layer of complexity to the case, but both parties remain committed to resolving the dispute. As the legal proceedings unfold, traders and investors will continue to monitor the developments and their potential impact on the value and adoption of XRP and other digital assets. The outcome of this case could have far-reaching implications for the future of cryptocurrency regulation and the broader financial landscape.