The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has taken an unexpected turn — and XRP holders are once again left in suspense. Judge Analisa Torres rejected a joint request from both Ripple and the SEC to finalize their proposed settlement agreement. The development caught much of the crypto community off guard and has raised new questions about where the lawsuit stands today.
To recap — earlier this month, both Ripple and the SEC agreed to a revised settlement that would reduce Ripple’s financial penalty from $125 million to $50 million, refunding the remaining $75 million back to the company. Additionally, both parties sought to lift a prior injunction that restricted Ripple from certain future actions.
However, Judge Torres declined the request. The reason? Procedural missteps.
Where Is the New Filing?
It’s been over a week since Judge Torres’ ruling on May 15th, and no corrected filing has appeared on the docket. This delay has sparked frustration and speculation in the XRP community, with many wondering what’s causing the holdup.
Because it wasn’t just “procedural inaccuracies.” There was a significant substantive problem with their approach, and the judge made it clear the bar they must clear is a lot higher than they’d claimed.
— Marc Fagel (@Marc_Fagel) May 22, 2025
A former SEC lawyer weighed in, explaining that the issue wasn’t merely a procedural oversight. According to the legal expert, there was a “significant substantive problem” with the original agreement’s approach — and Judge Torres made it clear that both parties would need to meet a much higher standard to justify amending a final ruling.
What Does This Mean for Ripple and XRP?
This procedural fumble doesn’t spell the end for Ripple’s hopes of settling the case, but it does delay the process. For now:
- The original $125 million fine still stands.
- The existing injunction remains active.
- The SEC’s case against Ripple technically remains open.
The Ripple vs SEC case continues to be a chess match of legal maneuvers. While both parties seem eager to settle, courts don’t easily reverse final judgments without a well-supported legal argument.
