Before Donald Trump’s second reign as the President of the United States, the crypto industry was enmeshed in numerous disputes arising from what many crypto industry operators described as regulation by enforcements. One of such disputes involves Ripple, a blockchain company, and the US Securities and Exchange Commission (SEC).
Embroiled in a legal battle with Ripple since 2020 over the allegation that Ripple offered XRP as an unregistered security., the SEC has been taking steps, under a new leadership, to take what one might rightly describe as corrective steps. The detail, however, is in the detail—as the latest court ruling would show.
Court Ruling: Settlement between USE SEC and Ripple rejected due to procedural flaw.
In a recent development, a US court rejected a proposed settlement between Ripple and the SEC due to a procedural flaw. The settlement agreement, signed by Ripple’s lawyers on April 23 and subsequently sanctioned by the SEC on May 8, aimed to resolve part of the case by reducing the penalty and lifting the injunction.
However, the court deemed the proposal “procedurally improper” because it did not cite Rule 60, which governs relief from judgments or orders.
Read also: XRP: US SEC drops years-long case against Ripple.
Read also: XRP Price Surges as Ripple Settles with U.S SEC; CEO Credits Trump
Ripple and SEC says nothing has changed; just a little bump.
Despite the setback, Ripple’s Chief Legal Officer, Stuart Alderoty, assured that both parties remain committed to resolving the case. Nothing in today’s order changes Ripple’s wins (i.e., XRP is not a security, etc.),” Alderoty stated. “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.”
Similarly, attorney Bill Morgan clarified that the settlement process was in motion but went off course due to the procedural flaw.
Read also: XRP Defies Volatility: Trading Volume Holds Strong
Effect on XRP Price Movement
The court’s decision means that the existing injunction barring Ripple from committing future securities violations remains active, and the original $125 million penalty stands.
However, Ripple’s legal team is confident that the core outcome from the 2023 ruling—that XRP itself is not a security when traded on public exchanges—remains intact. Presently, the latest court ruling has not had any significant or noticeable impact on XRP’s price movement, but market observers are likely to watch the case closely for further developments.
This is to be expected as the court ruling is not a rejection of the substance of the settlement agreement, but technicalities bordering on the procedure through which it was submitted to the court. Therefore, unless Ripple actually pays the $125 million penalty or the court disagrees with a settlement between Ripple and the US SEC for some other substantive reason, a court decision that will negatively affect XRP price is unexpected.
Read also: XRP Price Surges as Ripple Settles with U.S SEC; CEO Credits Trump
Next Steps
The parties are expected to refile a joint motion, properly supported by Rule 60, which could enable them to proceed with a lowered penalty and revoke the ban on sales. This would be a significant step toward resolving the high-profile case. As the situation unfolds, the crypto community will be watching closely for any signs of a resolution.
Read also: XRP Price Projection: A Potential Surge to $65.63 by 2030?
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