The post Why did the Ripple vs SEC Settlement Get Complicated Again? appeared first on Coinpedia Fintech News
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
NEW: After speaking with three legal sources and tuning into @JohnEDeaton1’s live analysis, my read is that Judge Torres is playing hardball here—she’s not making it easy for the parties to simply walk away; instead, she’ll make them work for it.
Deaton raises a valid point:… https://t.co/GYU4RDt77R
— Eleanor Terrett (@EleanorTerrett) May 16, 2025
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.
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
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FAQs
The SEC sued Ripple in 2020, claiming XRP sales to institutions were unregistered securities offerings.
The SEC alleges Ripple sold XRP to institutional investors without registering it as a security, violating U.S. securities laws.
A judge ruled XRP sales to regular users aren’t securities, but institutional sales violated securities laws.
Judge Torres denied a joint request due to a filing error, delaying the Ripple vs SEC ruling and forcing a refiling.
A possible Ripple vs SEC settlement is in progress, but court pushback and procedural errors have delayed final approval.
