XRP Dips as U.S. Court Rejects Ripple-SEC Settlement Over Procedural Misstep ⚖️📉

In a surprising turn of events, XRP faced a sharp dip after a U.S. federal court rejected a joint settlement bid between Ripple Labs and the Securities and Exchange Commission (SEC) ❌.

A U.S. federal court has rejected a joint bid by Ripple Labs and the Securities and Exchange Commission (SEC) to settle their case, causing XRP to decline sharply.

The court ruled that the motion was procedurally improper as it failed to comply with Rule 60 of the Federal Rules of Civil Procedure.

The motion, which was filed on May 8, aimed to dissolve a previous injunction and reduce Ripple’s $125 million penalty to $50 million. Both Ripple and the SEC had agreed to this revised deal as part of ongoing efforts to resolve their long-running legal battle.

However, the court’s dismissal means the settlement cannot move forward—at least not yet. Legal experts say the issue was a technical error, and the parties will likely refile the motion correctly soon.

This setback comes after a 2023 ruling by the court found that XRP is not a security in programmatic sales.

“This does not affect any prior legal wins, such as the 2023 ruling that XRP is not a security in programmatic sales, or the court’s rejection of the SEC's request to intervene in the Fair Fund motion,” said Ripple’s Chief Legal Officer, Stuart Alderoty.

In response to the news, XRP's price slid over 7%.

Moreover, the cryptocurrency's open interest fell by 9.4% to $4.93 billion. Over $21 million in long positions were liquidated, indicating that traders are becoming pessimistic about the unresolved dispute.

At the time of writing, XRP is changing hands at around $2.42.