Judge Analisa Torres has halted the proposed $50 million settlement deal between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) in their long-running lawsuit over XRP. She denied a joint motion by Ripple and the SEC seeking an early or “indicative” ruling on the settlement, stating that she cannot comment on penalties or modify the final judgment while the case is still under appeal.
The judge’s rejection was based on procedural grounds, including jurisdictional issues and failure to meet the legal standards required for modifying a final judgment under Rule 60. The motion was deemed “procedurally improper” because the case remains on appeal, and the court emphasized that procedural precision is critical given the national regulatory implications of the case.
Despite this setback, the denial does not change XRP’s legal status or Ripple’s previous legal victories. The 2023 ruling that XRP is not a security when traded on public exchanges still stands. Ripple’s Chief Legal Officer Stuart Alderoty confirmed that the order is about procedural technicalities related to the dismissal of Ripple’s cross-appeal and does not affect the substance of the case. Both Ripple and the SEC remain aligned in their intention to fully resolve the case and plan to revisit the issue together in court.
The background is that Ripple was originally fined $125 million for unregistered XRP sales, but the parties agreed to a reduced $50 million settlement. The SEC also withdrew its appeal of the 2023 ruling that XRP is not a security in public sales. However, the appeals process remains on hold pending resolution of procedural issues, and the case is not yet fully closed.
The lawsuit continues to be closely watched as a landmark case for cryptocurrency regulation in the U.S.
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