Ripple vs. SEC: A Settlement Stalls as Judge Questions Motives

A Four-Year Saga Hits Another Snag

The Ripple vs. SEC lawsuit, a four-year legal battle over XRP’s status, appeared close to resolution with a proposed $125 million settlement, but U.S. District Judge Analisa Torres has thrown a wrench in the works. Pro-XRP lawyer John Deaton explains the latest twist, estimating a 70% chance of approval despite procedural hurdles. As XRP trades at $2.23, down 34% from its post-election peak, the crypto community awaits clarity.

The Settlement Stumble: Procedural Pushback

Ripple and the SEC jointly filed for a $125 million settlement, with Ripple paying $50 million and the remaining $75 million returned from escrow, aiming to lift an injunction barring XRP sales to institutional investors. However, Judge Torres rejected the motion as “procedurally improper,” demanding “exceptional circumstances” to reverse her 2023 ruling, which found Ripple’s programmatic XRP sales non-securities but institutional sales in violation of securities laws. Deaton notes the judge’s reluctance stems from the case’s 4.5-year drain on resources, requiring a stronger justification.

Deaton’s Take: SEC’s Shift Falls Short

Deaton, a vocal XRP advocate, expected the SEC to acknowledge its overly aggressive stance, especially after courts labeled its actions “arbitrary and capricious” in cases like Debt Box. He argues the joint filing should have cited upcoming crypto laws, like the Genius Act discussed yesterday in Vietnam’s context, to justify settling. While the SEC’s new crypto-friendly chair, Paul Atkins, signals a softer approach, Deaton sees a 70% chance Torres will approve the deal if refiled correctly by June 16, 2025, when the SEC’s 60-day settlement pause ends.

XRP’s Market and Industry Impact

XRP surged 255% post-Trump’s election, fueled by hopes of regulatory relief, but has since dropped 34% to $2.23, reflecting settlement uncertainty. Yesterday’s Bitcoin $200K hype and Vietnam’s crypto legalization highlight a broader pro-crypto shift, yet XRP’s fate remains tied to this case. The 2023 ruling that XRP isn’t a security on secondary markets spurred Coinbase’s relisting and ETF filings by Grayscale and Bitwise, with an 80% chance of XRP ETF approval by late 2025. However, X posts like @amonbuy’s bullish June 13 prediction of a resolution clash with @AltcoinBale’s false claims of closure, sowing confusion.

Corporate Crypto Context: Ripple’s Edge

Unlike Bitcoin’s speculative rally or Pi Network’s retail crash, discussed yesterday, Ripple’s focus on cross-border payments via RippleNet (processing nearly 1 million daily transactions) aligns with corporate trends like Walmart/Amazon’s stablecoin plans. VivoPower’s $100 million XRP treasury buy signals altcoin adoption, as Deaton predicted, but the unresolved injunction limits Ripple’s institutional sales, hampering growth. A final settlement could unlock Ripple’s global expansion, positioning XRP as a regulated crypto leader in the U.S.

Conclusion: Clarity or Continued Chaos?

The Ripple vs. SEC saga, poised for a $125 million settlement, hangs on Judge Torres’ demand for procedural rigor. Deaton’s 70% optimism reflects a shifting regulatory tide, echoed in Vietnam’s crypto laws and corporate stablecoin pushes, but the lack of SEC contrition risks further delays. As XRP’s price wobbles and ETF hopes rise, a resolution could cement Ripple’s role in global finance—or leave it mired in legal limbo. The June 16 deadline looms, but Ripple’s victory remains incomplete.