XRP price dropped drastically after the latest update in the Ripple vs. SEC lawsuit. On May 15, 2025, U.S. District Judge Analisa Torres refused the U.S. Securities and Exchange Commission (SEC) and Ripple Labs’ joint request for an indicative ruling made under Federal Rule of Civil Procedure 62.1. The motion sought to dissolve an injunction against Ripple’s sale of unregistered securities and to reduce the $125 million civil penalty imposed on the company to $50 million.
XRP Price Reacts as Judge Torres Rejects Major Motion in Ripple SEC Case
In her order, Judge Torres wrote, “The motion is DENIED.” The parties had requested the court’s guidance on whether it would approve a proposed agreement that would vacate parts of the Final Judgment issued on August 7, 2024, including a significant reduction of the penalty. The Final Judgment had found Ripple liable for violating Section 5 of the Securities Act by offering and selling unregistered securities.
The motion was presented as part of a broader effort to settle ongoing appeals before the Second Circuit. The SEC and Ripple claimed the settlement would “reduce the Civil Penalty by sixty percent,” arguing it was “fair and reasonable.”
Judge Torres, however, concluded the request was “procedurally improper.” Citing SEC v. Citigroup Global Markets, Inc., she stated that a court must determine whether a proposed consent decree is fair and reasonable “with the additional requirement that the public interest would not be disserved.”
After this decision, the XRP price plunged 4.64% to $2.43 at the time of writing on Thursday, May 15. It has crushed the hopes for a rally to the $3 mark in the short-term. However, a push above the critical resistance level of $2.50, which was breached earlier this week, could lead to a significant rebound.
Will the Ripple SEC Motion be Approved in Future?
“The parties’ request that the Court absolve Ripple of its obligation to (1) cease its illegal offer and sale of securities and (2) pay the full Civil Penalty amounts to a motion to vacate significant portions of the Final Judgment,” the judge explained. She emphasized that such a request falls under Federal Rule of Civil Procedure 60, which requires “a showing of exceptional circumstances.” The parties, Torres noted, “have made no effort to satisfy that burden here; their request does not even mention the Rule.”
The court determined that if jurisdiction were restored, it would still deny the request. “If jurisdiction were restored to this Court, the Court would deny the parties’ motion as procedurally improper,” Torres wrote. Thus, the clerk was instructed to terminate the motion at ECF No. 983.
Also Read: XRP Price Prediction: Is Ripple Token Rally to $3 in Danger?
