Ripple faced rejection of its settlement agreement with SEC due to legal technicalities

On Thursday, Federal Judge Analisa Torres denied a joint motion by Ripple and the U.S. Securities and Exchange Commission (SEC). The parties had proposed reducing the company's penalty from $125 million to $50 million and lifting the court injunction. However, Judge Torres rejected the settlement due to procedural violations.

Ripple and the SEC should have invoked Rule 60, which permits vacating a final judgment under exceptional circumstances. Instead, they pursued Rule 62.1, a provision only applicable during appeals that don't authorize a court to overturn rulings, but merely signals its willingness to reconsider. As Judge Torres emphasized, even mutual consent doesn't exempt litigants from proper procedural compliance.

According to Jungle Inc., Ripple now faces a choice: either refile the motion citing the correct rule to pursue penalty resolution, or continue appeals while accounting for potential risks. The case remains active, with court-ordered restrictions still in effect.

Against this backdrop, XRP declined 3.16%, according to Times Tabloid.