Ripple's Settlement Setback: Judge Rejects SEC Deal on Procedure

Judge Analisa Torres dismissed the SEC and Ripple's combined motion for settlement approval on procedural grounds. The court explained that since a final judgment was already entered in August 2024, any change must meet Rule 60 of the Federal Rules of Civil Procedure, which demands showing "exceptional circumstances" to change a final judgment. The motion was denied since it failed to meet this high legal threshold.

The denial does not stop settlement talks; Ripple and the SEC are able to resubmit their motion under Rule 60, explaining the revision to the final judgment. Specialists believe drafting the motion would take weeks, followed by a decision from the court. Until a new motion is passed, Ripple is under the original August 2024 ruling, which carries a $125 million fine and an injunction on future securities law offenses in terms of institutional XRP sales.

The SEC first brought the lawsuit against Ripple in December 2020, claiming unregistered sales of securities via XRP. The court ruled that Ripple's sales to institutions violated securities laws but sided with Ripple when it came to retail sales. Both sides agreed to settle the case in April 2025 and stayed appellate proceedings. Ripple's Chief Legal Officer Stuart Alderoty explained that the order is on procedural grounds and does not alter earlier victories, including the ruling that XRP is not a security