The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has hit another procedural bump. Judge Analisa Torres has denied a joint request from Ripple and the SEC because they used the wrong legal procedure.
On X, Legal expert James K. Filan broke the news, stating that the court’s denial was due to a technical misstep: both Ripple and the SEC didn’t use the correct legal rule when filing. In other words, their request wasn’t submitted in the proper legal format.
While the judge’s denial causes a delay, experts believe Ripple and the SEC will refile their motion correctly, keeping the case on track toward a settlement, just with a few more hurdles.
In response to Filan’s post, Attorney Fred Rispoli added further insight, “The meaning here is that the parties didn’t request relief under the right rule of civil procedure. So they will refile it under the correct rule.” Reading between the lines, he suggested both parties now need to “get on all fours and beg for relief”—a humorous way of saying they’ll need to be more careful and thorough going forward.
When a user on X questioned how both legal teams could make such a basic error, Rispoli responded, “No, they tried to do it the easy way first. Now they have to do it the hard, messy way.” The next likely move is for Ripple and the SEC to refile the motion using the correct legal procedure, which could slow down—but not stop—a potential settlement.
This latest development follows a joint motion filed on May 8, 2025, where Ripple and the SEC asked an appeals court to pause proceedings, signaling they were close to finalizing a settlement. That deal would include dissolving an earlier injunction and releasing $125 million set aside for penalties.
The case began in December 2020, when the SEC sued Ripple over allegedly selling XRP as an unregistered security. A partial court ruling last year sided with Ripple on retail sales but agreed with the SEC on institutional ones.
With Ripple and the SEC preparing to refile correctly, all eyes remain on how swiftly the court will respond and whether this long-running battle will finally see its end.
Also Read: XRP Price Prediction: Is Ripple Token Rally to $3 in Danger?
