XRP Legal Battle Continues as Judge Rejects Ripple-SEC Settlement Proposal

In a significant development for the cryptocurrency industry, a federal judge has rejected a joint $50 million settlement proposal from Ripple Labs and the U.S. Securities and Exchange Commission (SEC). The decision, citing procedural flaws, marks another chapter in the ongoing legal battle over XRP’s classification as a security. Despite the setback, XRP’s market price remains resilient at 2.40880000 USDT as of May 17, 2025. This article explores the implications of the court’s decision and what it means for XRP’s future.

Ripple-SEC Bid for XRP Settlement Rejected by Judge Citing ’Procedural Flaws’

A federal judge has denied a joint $50 million settlement proposal from Ripple Labs and the U.S. Securities and Exchange Commission, citing jurisdictional and procedural shortcomings. U.S. District Judge Analisa Torres ruled the motion improper while the case remains on appeal.

The lawsuit, initiated in December 2020, alleges Ripple raised $1.3 billion through unregistered XRP sales. Despite the setback, Ripple’s chief legal officer maintains the ruling doesn’t alter the company’s previous legal victories.

XRP Bounce From Trendline Validates Breakout, Bulls Target $4.5

XRP surged 50% over five weeks to $2.42, though still 30% below its January peak of $3.40. Analysts see a breakout potential if the token holds above $2.40, with price targets extending to $4.50.

A death cross on the 4-hour chart warns of possible downside if support at $2.20 fails. Egrag crypto notes a descending triangle breakout on daily charts, suggesting a retest of January highs could be imminent.

XRP and Emerging Penny Cryptos: A Market Outlook

XRP remains a focal point for investors eyeing penny cryptocurrencies—digital assets trading below $1. The Ripple network’s native token continues to attract attention for its role in streamlining cross-border payments, despite regulatory hurdles.

Newer projects like Dawgz AI ($DAGZ) are gaining traction by leveraging emerging technologies, challenging established tokens. Market participants are evaluating whether XRP’s institutional use cases can fuel another price surge, while also scouting for high-potential alternatives in the penny crypto space.

XRP Rally Stalls as SEC Motion Denied and Network Growth Falters

XRP’s recent surge has hit a snag as a U.S. court denied a joint motion by Ripple Labs and the SEC to reduce a $125 million penalty. The procedural roadblock adds uncertainty to the long-standing legal battle, coinciding with weakening network activity.

Judge Analisa Torres dismissed the proposed settlement, citing jurisdictional constraints. The decision leaves Ripple facing the full penalty while market momentum wanes. Network metrics suggest declining fundamental support for the cryptocurrency despite earlier bullish sentiment.