Ripple’s Settlement Motion Rejected by Court, XRP Price Drops 2.5%

Ripple's settlement attempt with the US Securities and Exchange Commission (SEC) was rejected on May 15 by a federal judge in New York. The motion was deemed procedurally improper due to incorrect filing methods.

Court Ruling Details

Judge Analisa Torres ruled Ripple and the SEC did not demonstrate “exceptional circumstances” required under Rule 60 for revisiting a final order.
The request aimed to reduce a $125 million fine to $50 million.
No changes were made to previous rulings, including XRP's classification as non-security in retail sales.

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. https://t.co/vBQdBD3FNe

— Stuart Alderoty (@s_alderoty) May 15, 2025

Next Steps for Ripple and SEC

Both parties must prepare a new motion under Rule 60, detailing reasons for reconsideration.
This process could delay any final settlement until late summer or later.

Market Reaction

XRP price decreased by 2.5% following the news.
Open interest fell by 9%, totaling $4.90 billion.
Long positions worth over $21 million were liquidated.
Key support level observed at $2.35; potential for further price dips if breached.

Legal Context

Stuart Alderoty emphasized that prior legal victories remain intact, affirming that only procedural matters were at stake in this ruling.