Ripple vs. SEC Showdown: XRP Tanks 5% as Legal Drama Unfolds
Another day, another crypto bloodbath—this time courtesy of the SEC’s relentless crusade. XRP holders watch helplessly as their bags get lighter amid fresh legal turbulence.
Behind the drop: A critical filing in the never-ending Ripple lawsuit just hit the docket. The regulator’s latest salvo? Demanding $2 billion in penalties while Ripple cries foul over ’mischaracterized evidence.’
Market reaction? Predictably panicked. XRP’s price chart now looks like a skydiver without a parachute—5% nosedive within hours. Traders are dumping positions faster than a Wall Street banker during margin calls.
Silver lining? The judge hasn’t ruled yet. But let’s be real—when has regulatory uncertainty ever been good for crypto prices? (Spoiler: Never.)
Judge Torres Rejects
The latest turn in this ongoing saga, which started back in late 2020, was reported by attorney James Filan on May 15. The filing reads that Judge Torres of the US District Court for the Southern District of New York has denied the motion as it WOULD be “procedurally improper” to approve it since both parties failed to file it correctly under Rule 60.
The motion was filed on May 8, as both parties had agreed to reduce the penalty by 60% from the initial $125 million the court ordered last year to $50 million.
After listing the lack of proper filing under the correct court rules, Judge Torres concluded:
“If jurisdiction were restored to this Court, the Court would deny the parties’ motion as procedurally improper.”
Stuart Alderoty, Ripple’s Chief Legal Officer, who confirmed in late March that the lawsuit between the two had essentially ended after they decided not to file appeals against each other, said the order changes “nothing” in “Ripple’s wins (i.e., XRP is not a security, etc).”
He noted that the denial is only due to procedural concerns and that the SEC and Ripple are “fully in agreement to resolve this case and will revisit this issue with the Court, together.”
Nothing in today’s order changes Ripple’s wins (i.e. XRP is not a security, etc). This is about procedural concerns with the dismissal of Ripple’s cross-appeal. Ripple and the SEC are fully in agreement to resolve this case and will revisit this issue with the Court, together. https://t.co/vBQdBD3FNe
— Stuart Alderoty (@s_alderoty) May 15, 2025
XRP Price Dips
Ripple’s cross-border token jumped toward $2.7 earlier this week where it faced immediate rejection that pushed it south to $2.5 yesterday. However, the court’s denied motion drove it lower once again as it dipped by over 5.5% at one point to $2.36.
It has recovered some ground and now sits above a critical support level around $2.38 but it’s still approximately 5% down on the day, while BTC has managed to bounce off and sits close to $104,000.
