Why did the Ripple vs SEC Settlement Get Complicated Again?

Ripple and the U.S. SEC are back in the spotlight after a small legal mistake delayed their case. Judge Analisa Torres denied a recent joint request from both sides, not because of the content but because they didn’t file it correctly. According to legal expert James K. Filan, the motion was rejected because it didn’t follow the correct legal rule.

Legal Blunder Stalls Ripple Settlement—Here’s What Happens Next

Attorney Fred Rispoli explained that Ripple and the SEC simply used the wrong rule of procedure. He said they will now have to “do it the hard, messy way” by refiling the motion properly. While it’s a setback, it’s not a big one. Legal analysts believe both sides will fix the error and refile soon.

Just a few days earlier, on May 8, Ripple and the SEC had asked an appeals court to pause ongoing proceedings, showing they might be close to a settlement. That deal could include lifting an earlier court order and freeing up $125 million Ripple had saved for penalties.

Legal Experts Question SEC’s Sudden U-Turn in Ripple Lawsuit

However, John Deaton explained that Judge Torres’ denial isn’t just a technical glitch— it’s likely frustration. After five years of heavy litigation and over $250 million spent, the SEC now wants to back out. The judge isn’t letting that slide easily. She’s asking both Ripple and the SEC to prove why undoing her previous ruling is in the public’s best interest, especially since she had already ruled that Ripple broke securities laws in its institutional sales.

• Also Read :
•   Ripple News: How Long Till XRP vs SEC Case Actually Ends? Deaton Breaks It Down
• ,

On the other hand, former SEC attorney Marc Fagel pointed out that the SEC’s move is not normal. This is not the way for an agency to win a case, get a court order, and then suddenly change its mind just because there’s a new administration. It makes the SEC’s request look confusing and hard to justify in front of the court. 

4 Years, 1 Ruling, and a Filing Error Later—What’s Next for Ripple?

This legal fight began back in December 2020 when the SEC sued Ripple for selling XRP as an unregistered security. Last year, a judge ruled partly in Ripple’s favor, saying XRP sales to regular users weren’t securities, but sales to institutions were.

Now, both parties are expected to refile their request using the proper format. Although this mistake slows things down slightly, it hasn’t changed the overall

FAQs