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Judge Blocks Ripple–SEC Settlement, Leaving XRP's Future Uncertain

A recent decision by Judge Analisa Torres has complicated the ongoing legal dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC).

The joint settlement agreement proposed by Ripple and the SEC, which aimed to reduce a $125 million penalty to $50 million, was denied by the judge citing procedural issues.

Ripple's attempts to lift an injunction prohibiting it from violating securities laws were also rejected, as Judge Torres stated that the motion should have followed Rule 60, requiring exceptional circumstances for modification.

This ruling comes after a partial summary judgment in 2023 had initially favored Ripple, interpreting certain XRP distributions as non-securities transactions.

However, with a final judgment in 2024 imposing a substantial penalty, the case remains in limbo as both parties await a clearer directive from the court.

Legal experts following the case have emphasized that true resolution hinges on whether Judge Torres will agree to dissolve the injunction linked to XRP, which would facilitate a settlement.

The current uncertainty has resulted in fluctuations in XRP's market price, following a 5% decline to $2.48 amid broader market losses.

Yet, XRP has demonstrated resilience, rising significantly over the past month due to recent factors such as a temporary easing between the U.S. and China.

With multiple ETF applications pending and potential legal developments, industry insiders remain hopeful that a favorable ruling could revitalize XRP's price and institutional interest.

As the situation evolves, both Ripple and the SEC's legal strategies will be closely watched, impacting the broader crypto landscape.