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A new twist in the legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) signals what could be the final phase of this multi-year case. Judge Analisa Torres rejected the joint motion from both parties, raising fresh uncertainty over the prospects of a settlement. What does this mean for the future of Ripple, XRP, and the broader crypto market?
Ripple vs SEC: New ruling only possible under strict conditions
The May 16, 2025 ruling by Judge Torres marks a key moment in the ongoing Ripple vs SEC lawsuit. The motion for an indicative ruling was firmly rejected due to “procedural impropriety.” This means the court will not give preliminary approval to any settlement revisions without a formal and transparent legal process.
According to crypto attorney John Deaton, a revised ruling is only possible if both parties abandon previous positions. The SEC would need to publicly acknowledge that XRP is not a security, while Ripple must align itself with evolving legislative frameworks. Additionally, both parties would need to reference current congressional bills that classify crypto assets as commodities—similar to gold or oil.
Deaton stated during a livestream that the SEC must also argue that Ripple’s XRP sales caused no harm to investors. Only then might Judge Torres consider lifting or modifying the injunction that currently restricts Ripple from selling XRP to institutional clients.
Legal Experts: SEC must admit mistakes to move forward
Legal analysts Fred Rispoli and Bill Morgan echoed Deaton’s assessment. Rispoli argued that both sides must submit a 25-page motion outlining which other cases or claims they are dropping. The SEC should also include declarations from its commissioners admitting the agency’s lack of meaningful crypto guidance.
Rispoli estimated that drafting such a motion would take two to three weeks, followed by an additional one to two weeks for judicial review. XRP’s price is expected to remain volatile during this period as traders respond to legal developments.
Bill Morgan added that the SEC might need to conduct a new commissioner vote before proceeding with any settlement. This hints at internal disagreement within the agency about its strategy toward Ripple and the broader crypto sector.
What’s next for Ripple, XRP, and the crypto industry?
While the judge’s rejection appears to be a setback, it may ultimately be a push toward greater legal transparency. A carefully crafted new motion could lead to a more definitive and fair resolution—not only for Ripple, but for the entire crypto industry.
XRP EUR – XRP Euro Price Chart
Following the ruling, XRP dropped 4% to approximately $2.40. Despite the short-term decline, investor sentiment remains cautiously optimistic. If Ripple can reach a settlement that avoids XRP being labeled as a security, it would set a strong precedent for other crypto firms operating in the United States.
Judge Torres’ ruling also highlights the growing importance of legislative clarity around digital assets. Several crypto-related bills are now under review in Congress, and Ripple’s active participation in shaping these regulations could be a strategic move to secure its long-term position.
The Ripple vs SEC case remains one of the most significant legal battles in crypto history. The coming weeks will be pivotal: either the two parties meet the court’s expectations for a revised agreement, or the case moves closer to a final courtroom showdown.
