TL;DR
- A U.S. federal court rejected the $50 million settlement between Ripple and the SEC, considering it improper and beyond its jurisdiction.
- The judge noted that, aside from lacking authority while the case remains under appeal, the motion failed to provide sufficient legal grounds.
- Ripple clarified that this setback does not affect its previous favorable rulings, and both parties plan to submit a new, properly filed motion.
A U.S. federal court rejected this week the $50 million settlement that Ripple Labs and the Securities and Exchange Commission (SEC) had proposed to resolve part of their legal dispute. Judge Analisa Torres dismissed the motion, pointing out that it had been improperly filed and fell outside her jurisdiction, as the case is currently under appeal.
The original lawsuit, filed in December 2020, accused Ripple of raising $1.3 billion through unregistered XRP sales. Since then, the case has gone through several stages, with some rulings in the company’s favor, though the legal process remains ongoing. In this context, the crypto firm and the SEC attempted to settle a portion of the litigation, but the effort failed for not meeting the legal requirements necessary to modify a final judgment during an active appeal.
The judge explained that even if she had the authority to rule on the agreement, the request did not provide sufficient legal justification. This leaves the partial resolution both parties sought on hold, forcing them to reconsider their procedural strategy.
Ripple Clarifies This Decision Does Not Affect Previous Rulings
Ripple made it clear that this decision does not alter the favorable rulings previously obtained in court. Stuart Alderoty, the company’s Chief Legal Officer, stated that this is merely a procedural issue tied to the dismissal of a cross-appeal. He explained that both parties remain intent on resolving the case and will work to properly file a new motion with the court.
The dispute between Ripple and the SEC stands as one of the most high-profile legal battles within the U.S. crypto industry. Its outcome could influence how other digital assets are regulated and traded in the market.
For now, the case remains open, and any final resolution will depend both on the decisions of the appeals courts and the ability of the parties involved to reach valid agreements within the established judicial framework
