Ripple-SEC Settlement Denied Over Procedural Errors

Judge Analisa Torres has denied the joint request by Ripple Labs and the SEC to approve a proposed $50 million settlement, citing procedural errors and the failure to invoke the appropriate legal standard under Rule 60, which requires 'exceptional circumstances' to alter a final judgment. The case remains under appeal in the Second Circuit, limiting the district court's jurisdiction and preventing dissolution of the injunction or reduction of Ripple's $125 million penalty at this stage. The denial does not affect Ripple's prior legal victories, including the 2023 ruling that XRP sales on exchanges were not securities. Immediate volatility followed the ruling, with XRP prices dropping and trading volumes spiking amid wider crypto market caution. Legal experts describe the denial as a technical setback, not a substantive defeat for Ripple. Both Ripple and the SEC are expected to refile their request using the correct legal procedures.