Ripple’s Settlement Motion Rejected by Judge Torres: What’s Next for the Cryptocurrency?

In a recent development on May 16th, U.S. District Court Judge Analisa Torres dismissed the joint settlement motion filed by SEC and Ripple. This motion aimed to lift the injunction stemming from the August 2024 ruling and facilitate the release of $50 million from a total of $125 million in civil penalty escrow earmarked for the SEC, with the remaining funds slated for Ripple. The judge noted that the motion failed to meet the procedural criteria outlined in Rule 60 of the Federal Rules of Civil Procedure.

Ripple’s Chief Legal Officer affirmed plans to resubmit a compliant settlement application. Legal analysts have pointed out that both parties must adequately justify their settlement proposition as per Rule 60, particularly detailing the SEC’s rationale for retracting additional charges. This rigorous process could extend the timeline by an estimated 3-5 weeks. Importantly, the judge clarified that this rejection solely addresses procedural shortcomings, not the merits of the proposed settlement.