One Week After Settlement Snag, Ripple And SEC Yet To File Correction As XRP Market Waits

• Ripple SEC settlement rejection last week by Judge Torres over filing errors extends XRP uncertainty.
• Market awaits Ripple & SEC’s next move on a corrected settlement after the May 15 denial.
• Despite the legal setback, XRP price shows some recovery this week; technicals hint at potential breakout.

The long-running legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) is far from over. Judge Analisa Torres, who has been overseeing the high-profile case, has officially rejected a recent settlement request from both parties, throwing the future of the lawsuit into uncertainty once again. 

A few weeks ago, Ripple and the SEC had agreed to settle their long-running legal dispute, aiming to wrap things up quickly. However, Judge Torres denied their joint request, calling it “procedurally improper.” In simple terms, the court said they didn’t follow the correct legal process when filing their request.

Judge Torres Cites “Procedurally Improper” Filing in Settlement Denial

The denial came because the motion was filed under the wrong legal rule. Instead of using Rule 60 — the correct one for asking a court to revise a final decision — both parties filed under Rule 62.1, which only applies when a case is on appeal. This technical error means the judge could not approve the deal, even though both Ripple and the SEC had agreed to it.

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After the recent development, users are now asking: where is the corrected filing from the SEC and Ripple? Many expected a corrected version to be filed promptly, but it still hasn’t appeared. For the unversed, Ripple and SEC submitted a settlement agreement on May 8, but Judge Torres denied it on May 15 due to procedural errors.

Former SEC lawyer Marc Fagel stepped in and clarified. He wrote, “Because it wasn’t just “procedural inaccuracies.” There was a significant substantive problem with their approach, and the judge made it clear the bar they must clear is a lot higher than they’d claimed.”

XRP Price Takes a Hit

As a result of this latest twist, XRP’s price took a hit, falling about 5% on May 15. At the time of writing, XRP is trading at $2.45 and is up by more than 1% in the last 24 hours. 

Source: @guyontheearth

According to experts, XRP is showing signs of a breakout. The last time it crossed the moving average (MA) on the weekly chart, the price surged from $0.60 to $3.40 in just four weeks.

Related: XRP Price Set to Gain as Ripple’s RLUSD Taps Mica-Driven EU Market Gap

Now, XRP is once again approaching that key level, and if it closes above the MA this week, it could signal the start of another major price expansion.