Ripple’s SEC Victory Still Stands: Court Rejects Settlement, But Case Continues

Ripple‘s SEC Victory Remains Undisturbed

Ripple has clarified that a recent court decision rejecting a proposed settlement with the Securities and Exchange Commission (SEC) doesn’t affect the core victory achieved in the lawsuit. Despite the rejection, Ripple‘s legal team insists that the outcome of the case remains unchanged, confirming that XRP is not a security. The court‘s decision focused on procedural issues related to the filing of the settlement proposal.

Judge Analisa Torres of the US District Court for the Southern District of New York denied the joint Ripple–SEC motion for an indicative ruling on their proposed settlement on May 15th. The judge deemed the motion “procedurally improper” as it lacked the necessary procedural motions to support the settlement. Specifically, the court document highlighted that the SEC and Ripple failed to address the “heavy burden” required to vacate the injunction and reduce the civil penalty.

Procedural Hiccups, Not Legal Reversal

Ripple‘s chief legal officer, Stuart Alderoty, emphasized that the court‘s rejection doesn’t alter the outcome of the lawsuit. He clarified that the decision stems from “procedural concerns with the dismissal of Ripple‘s cross-appeal.” This implies the court is not questioning the substance of the settlement itself, but rather the process by which it was presented.

The SEC and Ripple had previously agreed to reduce the initial $125 million fine, with the SEC retaining $50 million. However, the court deemed the parties’ motion insufficient for granting the settlement approval. The judge highlighted the absence of a specific rule addressing the parties’ request, underscoring the procedural missteps that led to the rejection.

Community Seeks Clarity

Despite Alderoty’s reassurance that Ripple and the SEC remain committed to resolving the case, the lack of specific details about the procedural issues has generated concern within the XRP community. Many observers have questioned the lack of clarity and expressed disappointment with the lack of transparency surrounding the court‘s decision.

The XRP community’s skepticism stems from the previous announcement that the case was closed, followed by the revelation of ongoing negotiations and the procedural rejection of the settlement. This has led to a sense of unease among those invested in the future of XRP.

“Let’s remember that both he and Brad said the case was over, and it still isn’t; they’re cheating us a little,” commented one user on X.

Despite the procedural setback, the core victory regarding XRP‘s classification remains intact. The court‘s decision ultimately focuses on procedural aspects, highlighting the complexities involved in navigating the legal system. The ongoing discussions and efforts to reach a final resolution offer a glimmer of hope for the future of XRP and the broader crypto landscape.