XRP Price Slips as Judge Torres Hinders Ripple SEC Lawsuit Settlement

Key Insights:

• XRP price dips as Judge Torres denied Ripple-SEC settlement motion as “procedurally improper,” stalling resolution in the case.
• XRP price dropped over 5% to $2.4 after the court rejected the $50M penalty deal in the Ripple-SEC lawsuit.
• Ripple and the SEC must refile under Rule 60 to reduce the $125M fine and dissolve the XRP sales injunction.

XRP price dropped sharply after a key decision in the ongoing lawsuit between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). On May 15, 2025, Judge Analisa Torres rejected a request from both parties that wanted to remove an earlier court order and lower Ripple’s fine.

The denial came on procedural grounds, and the price of XRP dropped by almost 5% an hour later.

XRP Price Retreats Amid New Twist In Ripple SEC Lawsuit

Renowned attorney James K. Filan highlighted that Judge Torres ruled that the motion filed by Ripple and the SEC was “procedurally improper.” She stated the Ripple SEC lawsuit settlement request should have been submitted under Federal Rule of Civil Procedure 60, which governs motions for relief from a final judgment.

However, the parties failed to reference or comply with the requirements of this rule.

The court noted that the motion attempted to vacate major parts of the final judgment issued in August 2024. That judgment had found Ripple responsible for selling unregistered securities to institutional investors.

The court emphasized that requests to remove such findings require a “showing of exceptional circumstances,” which was not provided. The development has an immediate impact on the XRP price, indicating a waning risk-bet appetite of the investors.

Ripple and SEC Plan to Refile Settlement Motion Together

Legal experts expect Ripple and the SEC to refile their motion using the correct legal rule. Attorney Fred Rispoli noted that both parties took a faster route initially, but now must meet the court’s full legal standards. He said, “They will refile it under the correct rule.”

Ripple Chief Legal Officer Stuart Alderoty said the ruling does not change any of Ripple’s prior wins. He confirmed that both Ripple and the SEC remain aligned on settling the case and will work together to address the court’s concerns. “Ripple and the SEC are fully in agreement to resolve this case and will revisit this issue with the Court,” Alderoty posted on X.

Market Responds as XRP Price Tests Key Support

Following the court’s order, XRP’s price fell from $2.50 to as low as $2.4, marking a drop of more than 5%. Analysts say the drop came as traders were reacting to the legal uncertainty that could slow down a final decision in the long-running Ripple SEC lawsuit.

On technical charts, XRP is now looking to hold its recent low near $2.4 as support. A drop from here could take the price down to levels between $2.19 and $1.79. According to Coinglass data, XRP’s open interest fell by 6% to $5.08 billion. Long liquidations in the last 24 hours also crossed $20 million.

Earlier this week, XRP had touched $2.70 but faced rejection at that level. As the legal case makes slow progress, traders are closely eyeing XRP prices to see if it can hold onto its key support levels.

Ripple Vs SEC Lawsuit: What Lies Ahead?

The parties now have to ask the Court of Appeals to let them make small changes to their case. If granted, this would allow Judge Torres to review a revised settlement request that meets procedural standards. Legal expert Bill Morgan said the process may involve dissolving the injunction, reducing the penalty to $50 million, and then moving to dismiss ongoing appeals.

Judge Torres also reminded that courts must assess whether a proposed settlement is fair, reasonable, and serves the public interest. She wrote, “Relief from judgment…is granted only upon a showing of exceptional circumstances.” The court added that this burden had not been met.

The lawsuit, which started in December 2020, has made some important decisions. In July 2023, Judge Torres said that XRP sales to regular buyers were not illegal like selling securities. However, she decided that the XRP sales to big investors went against the US financial rules.

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