16-5-2025 – A proposed settlement between blockchain firm Ripple and the US Securities and Exchange Commission (SEC) has hit a procedural stumbling block, though the company maintains its fundamental legal victory remains intact.
Judge Analisa Torres of New York’s Southern District Court deemed the joint motion “procedurally improper”, citing the parties’ failure to properly address requirements for modifying the previously ordered injunction and penalty reduction.
The development comes against the backdrop of a broader settlement framework that would have seen the SEC retain $50 million of the original $125 million fine, as previously disclosed by Stuart Alderoty, Ripple’s chief legal officer.
Nothing in today’s order changes Ripple’s wins (i.e. XRP is not a security, etc). 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. https://t.co/vBQdBD3FNe
— Stuart Alderoty (@s_alderoty) May 15, 2025
“The ruling centres purely on procedural technicalities regarding our cross-appeal dismissal”, Alderoty emphasised, maintaining that the court’s earlier determination on XRP’s non-security status stands unchanged.
The timing of these proceedings has sparked debate within the cryptocurrency community, particularly following Ripple CEO Brad Garlinghouse’s March announcement declaring the lawsuit’s conclusion. Critics have voiced concerns about transparency, questioning the precise nature of the procedural hurdles and seeking clarity on the case’s actual status.
Adding to the complexity, the matter has become entangled with separate controversies, including unverified claims regarding former President Trump’s alleged involvement with Ripple-affiliated lobbying efforts concerning a proposed national cryptocurrency reserve.
The Bitcoin community has notably expressed criticism of Ripple’s advocacy for a diverse cryptocurrency reserve strategy, rather than a Bitcoin-exclusive approach.
The court’s detailed ruling highlighted that both parties had failed to address the “heavy burden” required for such modifications, noting their submission’s complete omission of relevant procedural rules. Despite these setbacks, Alderoty has confirmed that both Ripple and the SEC remain committed to reaching a resolution.