Ripple-SEC Lawsuit: Settlement Stalled

The Ripple-SEC lawsuit continues, with no immediate end in sight. Judge Analisa Torres recently rejected a joint motion from Ripple Labs and the SEC for a settlement, throwing a wrench into earlier predictions of a resolution within 4-5 weeks.

Judge Torres Denies Settlement Motion

Judge Torres cited procedural errors in dismissing the joint request for an indicative ruling. The ruling stated: "If jurisdiction were restored to this Court, the Court would deny the parties’ motion as procedurally improper."

This setback follows a request from Ripple and the SEC to vacate a 2024 judgment, reducing the imposed fine from $125 million to $50 million. The SEC’s withdrawal of its appeal in March left Ripple's cross-appeal active, necessitating the indicative ruling request.

What Happens Now?

• The Background: The SEC appealed Judge Torres' 2024 ruling that XRP sales on certain exchanges didn't constitute securities. Ripple filed a cross-appeal, challenging the $125 million penalty.
• Ripple's Response: Ripple's legal chief, Stuart Alderoty, clarified that the judge's rejection doesn't impact their previous wins (XRP not being a security in certain contexts) and that they would readdress the issue with the court.
• Expert Opinion: Attorney Fred Rispoli deemed the rejection a waste of time, but predicted a resolution within 2-3 weeks of resubmission and subsequent judicial review.

Despite the setback, the XRP market showed a positive reaction. CoinGlass data revealed that nearly $50 million worth of XRP moved from exchanges to self-custody in the past 12 hours. Over a 7-day period, over $270 million in XRP were withdrawn, suggesting bullish sentiment. Interestingly, futures market retail activity remained neutral, unlike the 'too many retail' threshold observed during last year's rally.

XRP, however, did see a 6% drop from $2.6 to $2.4 following the news update. While the lack of a near-term settlement creates uncertainty, the market reaction suggests that some investors remain optimistic about the future of XRP.

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