Quick Summary
- Judge Analisa Torres rejects SEC-Ripple settlement, calling it “procedurally improper.”
- Ripple and SEC sought approval for a $50M payment deal, reducing the original $125M fine.
- Ripple expands globally, with partnerships in the Middle East and a U.S. pharma firm integrating XRP.
- SEC’s regulatory tone shifts under President Trump’s pro-crypto stance.
- Several crypto-related investigations dropped, indicating a friendlier approach to blockchain.
Judge Halts SEC-Ripple Settlement Attempt
The long-standing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) isn’t over yet. In a surprising twist, Judge Analisa Torres of the U.S. District Court for the Southern District of New York ruled on May 15 that the proposed joint settlement was “procedurally improper.”
In her filing, Torres stated:
“By styling their motion as one for ‘settlement approval,’ the parties fail to address the heavy burden they must overcome to vacate the injunction and substantially reduce the Civil Penalty.”
The proposed agreement would have allowed Ripple to pay only $50 million of the original $125 million fine, with the remaining amount returned to the company. Ripple and the SEC had hoped that this deal would bring their courtroom saga to a close.
Ripple Powers Ahead Despite Legal Hurdles
While the U.S. legal system deliberates, Ripple isn’t slowing down.
The blockchain firm recently partnered with Zand Bank and fintech firm Mamo to integrate Ripple Payments into their cross-border transaction infrastructure in the Middle East.
In the U.S., Wellgistics, a pharmaceutical distribution company, announced it would integrate XRP into its payment and treasury operations. The company cited XRP’s speed and cost-efficiency as key drivers for the move.
SEC Signals Softer Stance Under Trump
The rejection of the settlement comes amidst a broader shift in the SEC’s approach to crypto regulation. Under President Donald Trump, the agency is showing signs of being more crypto-friendly.
Trump has appointed Paul Atkins, a former SEC commissioner known for his market-friendly views, to lead the agency — a clear departure from Gary Gensler’s enforcement-heavy strategy.
In recent months, the SEC has:
- Dropped lawsuits against Coinbase and Cumberland DRW.
- Closed its investigation into Uniswap Labs without any action.
- Ended its probe into CyberKongz, a leading NFT and gaming project.
- Announced it will not pursue further legal action against Richard Heart, founder of Hex, PulseChain, and PulseX.
What’s Next?
The SEC and Ripple now face an uncertain path forward, with both sides possibly needing to reframe their settlement efforts or head back into appeals. Meanwhile, Ripple’s growing global footprint and the SEC’s softened stance hint at a changing landscape for crypto in the U.S.
Stay tuned — this legal drama is far from over, but the tides may be turning in favor of blockchain innovators.