Another important update has come in the ongoing legal fight between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). Judge Analisa Torres has denied the joint request made by Ripple and the SEC for an indicative ruling that would have helped move their settlement plan forward.
In simple terms, the court said that even if it had the power to decide on the matter right now, it would reject the request because it didn’t follow the correct legal process. The motion, filed on May 8, 2025, asked the court to lift its earlier order stopping Ripple from selling XRP in violation of the law and to reduce Ripple’s $125 million penalty to $50 million. But the judge pointed out that the parties didn’t meet the legal requirements needed for such a request.
This is the latest chapter in a case that began in 2020 when the SEC sued Ripple, accusing the company of selling XRP as an unregistered security. In 2024, Ripple was ordered to pay a large penalty, and both Ripple and the SEC later appealed that decision. While those appeals are still ongoing, the two sides recently agreed to settle the case.
As part of their settlement plan, Ripple and the SEC signed an agreement in April and May of this year. They also asked the court to pause the appeals and filed a motion for the court to support their deal. However, Judge Torres denied this request because the parties didn’t properly follow Rule 60, which covers how final court decisions can be changed. The court noted that the motion didn’t explain why an exception should be made in this case.
Reacting to the decision, attorney Bill Morgan explained how the settlement process was supposed to work. He said the agreement was signed, the appeals were paused, and the parties asked the court for an indicative ruling. If that had been approved, they would have asked the appeals court for a limited remand to officially complete the settlement. Now, with the motion denied, the process has hit a roadblock.
Ripple’s CLO Stuart Alderoty said, “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. Ripple and the SEC are fully in agreement to resolve this case and will revisit this issue with the Court, together.”
This means Ripple and the SEC must decide whether to fix their legal paperwork and try again or take a different approach
If refilled correctly, the settlement could be approved in a few months, pending court and appeal processes.
Rule 60(b) allows courts to revise final rulings, but Ripple and the SEC didn’t meet its strict conditions.
No, the case is ongoing. The denied motion is a setback, but both sides are still working toward a final settlement.
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