Kriptofoni News

⚖️ Not a Procedural Error, But a Fundamental Flaw: #Ripple $XRP Reels After Judge Rejects SEC Settlement

In a surprising twist in the long-running battle between Ripple and the U.S. Securities and Exchange Commission (SEC), Judge Analisa Torres of the Southern District of New York rejected the jointly proposed revised settlement. The decision preserves the $125 million penalty and keeps in place the restrictions on Ripple’s future actions, catching the crypto community off guard and sending XRP holders back into a fog of legal uncertainty.

🛑 Judge’s Message: Not a Technical Error, But a Legal Gap

Judge Torres didn’t mince words in her reasoning. The court documents make clear: this wasn’t a matter of procedural missteps, but a lack of substantive legal basis. Ripple had sought to reduce its fine and lift future restrictions on token sales, while the SEC aimed to close the case swiftly.

However, the judge stressed that to modify a final judgment, both parties must provide "clear and convincing" justification, not just mutual agreement. The court wants more than a handshake — it wants proof of public interest being served.

As it stands, Ripple still faces a $125 million penalty, and its institutional dealings remain under strict scrutiny.

📄 Why Hasn’t the New Settlement Filing Been Submitted Yet?

Over a week has passed since the ruling, yet no updated filing has been made, frustrating the XRP community. Former SEC attorney Marc Fagel suggests the problem isn’t just formalities — the prior agreement was structurally flawed, possibly doomed to fail again without a new legal foundation.

Legal experts now expect the parties to submit a revised agreement within 30 days. If properly supported, the judge could respond within weeks. If not, a decision could be pushed to late summer, further delaying resolution and raising opportunity costs for Ripple.