XRP News Today: Ripple-SEC Settlement Delayed Due to Procedural Error

The legal proceedings between Ripple and the SEC in the XRP case have encountered a procedural setback, but the overall settlement framework remains intact. The parties had previously reached a settlement agreement, signed by Ripple on April 23, 2025, and by the SEC on May 8, 2025. Following this, both sides filed a joint motion to place the appeal and cross-appeal in abeyance. However, a Rule 62.1 motion filed on May 8, seeking an indicative ruling from District Judge Analisa Torres, was denied due to a procedural error. The motion did not address Rule 60, which governs relief from final judgments, leading to its rejection.

Despite the denial, the court's decision was based on procedural grounds rather than substantive disagreement with the settlement. This means that the parties cannot yet proceed with the expected next step: a motion to the Second Circuit Court of Appeals requesting a limited remand. A remand would allow Judge Torres to grant the specific relief agreed upon in the settlement, including dissolving the injunction and approving the reduced penalty of $50 million.

Legal expert Bill Morgan clarified that the parties must now submit another joint motion that complies with procedural requirements. Stuart Alderoty, Ripple’s Chief Legal Officer, stated that both sides will revisit this issue with the Court. This suggests continued cooperation between Ripple and the SEC to finalize the agreed terms. Alderoty also clarified that the rejection did not impact Ripple’s victories and XRP’s status, but was merely due to a procedural error.

Once a corrected motion is submitted and approved, the sequence of actions will resume. Upon receiving a favorable indicative ruling, the parties will again request a limited remand from the Court of Appeals. After the remand is granted, they can return to Judge Torres to formally seek dissolution of the injunction and entry of the reduced fine. Despite the procedural error, the overall structure of the settlement remains intact. The initial agreement between Ripple and the SEC remains signed and valid. The setback delays the timeline but does not reverse the progress made. If the court ultimately grants the necessary relief, the final step will involve a joint motion to dismiss both the appeal and cross-appeal at the Second Circuit level.