In a setback for Ripple Labs and the U.S. Securities and Exchange Commission (SEC), their attempt to settle a protracted legal battle over XRP was rebuffed by U.S. District Judge Analisa Torres on Thursday. The proposed $50 million settlement was dismissed due to procedural missteps, adding another twist to the case that has been unfolding since December 2020.
Judge Calls Foul on Jurisdiction
Judge Torres didn’t mince words in her decision, pointing out that the settlement motion fell outside her jurisdiction. The case is currently in the appeals process, which complicates any attempts to modify the judgment. Even if jurisdiction wasn’t an issue, Torres noted that the motion didn’t align with the necessary standards for altering a final decision. Ripple and the SEC, despite their consensus on settling, now face a more convoluted path to resolution.
Ripple Chief Legal Officer Stuart Alderoty took to social media to clarify the situation. “Nothing in today’s order changed Ripple’s wins,” he asserted, emphasizing that the procedural hiccup pertained to the dismissal of Ripple’s cross-appeal. Alderoty assured that the company and the SEC are in sync on resolving the case and plan to revisit the matter with the Court.
Ripple’s Legal Odyssey
The Ripple-SEC saga began over four years ago, when the SEC accused Ripple of raising $1.3 billion through unregistered XRP sales. The case has since become a pivotal moment for the crypto world, sparking debates about regulatory boundaries and the classification of cryptocurrencies. With the appeals process now in motion, the legal journey appears far from over. For a deeper dive into the regulatory implications, see our coverage of the SEC’s latest guidance.
Interestingly, this isn’t just about Ripple versus the SEC. The outcome could set a precedent impacting how digital assets are regulated in the United States. As crypto markets evolve, the case’s implications extend beyond Ripple, potentially affecting countless other tokens and the regulatory clarity they desperately seek.
Market Ripples and Future Implications
Financial markets have been watching this case with bated breath, as any resolution could significantly impact XRP’s value and market perception. While Ripple’s digital currency has seen its share of volatility, the legal battle adds layers of uncertainty. The broader crypto ecosystem is equally attentive, given the potential ripple effects (pun intended) a settlement or ruling might have. This follows a pattern of institutional adoption, which we detailed in our analysis of corporate treasury investments.
Crypto analyst Jamie Thompson weighed in: “The rejection isn’t just a procedural setback; it’s a reminder of the complexities involved in crypto regulation. It’s a landscape that’s still taking shape, and this case is a cornerstone in that development.” Thompson’s view reflects a growing sentiment among industry insiders who recognize the case’s wider ramifications.
As the legal proceedings continue, stakeholders are left pondering the future. Will Ripple and the SEC manage to navigate the procedural maze and reach an agreement? How will markets react if the case drags on? These questions paint a picture of a market in flux, where regulatory clarity is the prize everyone’s chasing.
While the path forward remains uncertain, one thing is clear—the Ripple-SEC case is far from reaching its final chapter. As the crypto community holds its collective breath, the coming months promise to be anything but dull. The next steps taken by both Ripple and the SEC could very well shape the future of cryptocurrency regulation in the United States, leaving an indelible mark on the digital finance landscape.
Source
This article is based on: Ripple-SEC Bid for XRP Settlement Rejected by Judge Citing ‘Procedural Flaws’
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
