XRP Price Stalled by Procedural Roadblock in SEC Lawsuit

The cryptocurrency, which has surged in recent weeks on growing legal clarity and wider market momentum, is now facing turbulence

The cryptocurrency is now facing turbulence as a court ruling stalls its legal resolution with the U.S. Securities and Exchange Commission (SEC), while underlying network activity is showing signs of weakness.

In a pivotal development for the long-standing XRP lawsuit, U.S. District Judge Analisa Torres has denied a joint motion by Ripple Labs and the SEC to reduce a $125 million penalty. The request, which proposed slashing the fine to $50 million pending the withdrawal of a previous court injunction, was dismissed due to procedural constraints.

Judge Torres has denied the SEC and Ripple’s motion for an indicative ruling, citing procedural impropriety if jurisdiction were restored. James K. Filan via X

Judge Torres highlighted the court’s obligation to ensure any agreement is “fair and reasonable” and not contrary to public interest. She refrained from providing an indicative ruling, signaling that the proposed settlement requires further judicial scrutiny.

“The District Court must determine whether the proposed consent decree is fair and reasonable,” the judge stated in her ruling, emphasizing that years of litigation and judicial resources must not be disregarded.

Despite the setback, Ripple’s Chief Legal Officer Stuart Alderoty affirmed that the company will continue to work with the SEC to move the case forward. He noted that the rejection does not affect previous victories, reaffirming that XRP itself is not considered a security—a crucial distinction in the broader regulatory landscape for Ripple crypto assets.

The cryptocurrency is now facing turbulence as a court ruling stalls its legal resolution with the U.S. Securities and Exchange Commission (SEC), while underlying network activity is showing signs of weakness.

In a pivotal development for the long-standing XRP lawsuit, U.S. District Judge Analisa Torres has denied a joint motion by Ripple Labs and the SEC to reduce a $125 million penalty. The request, which proposed slashing the fine to $50 million pending the withdrawal of a previous court injunction, was dismissed due to procedural constraints.

Judge Torres has denied the SEC and Ripple’s motion for an indicative ruling, citing procedural impropriety if jurisdiction were restored. James K. Filan via X

Judge Torres highlighted the court’s obligation to ensure any agreement is “fair and reasonable” and not contrary to public interest. She refrained from providing an indicative ruling, signaling that the proposed settlement requires further judicial scrutiny.

“The District Court must determine whether the proposed consent decree is fair and reasonable,” the judge stated in her ruling, emphasizing that years of litigation and judicial resources must not be disregarded.

Despite the setback, Ripple’s Chief Legal Officer Stuart Alderoty affirmed that the company will continue to work with the SEC to move the case forward. He noted that the rejection does not affect previous victories, reaffirming that XRP itself is not considered a security—a crucial distinction in the broader regulatory landscape for Ripple crypto assets.