Ripple Confirms XRP's Victory as SEC Settlement Collapses in Court

The regulatory transparency of XRP remains very strong as Ripple's legal director confirms that the status of this currency as not being a security remains unchanged, even after the court rejected the proposal to settle with the SEC. Ripple's legal chief calms fears after court rejects SEC's deal on XRP Ripple's chief legal officer, Stuart Alderoty, spoke to the crypto community on Thursday following a court ruling rejecting a joint request by Ripple Labs and the U.S. Securities and Exchange Commission (SEC) on amending an earlier ruling in their ongoing lawsuit over XRP. Writing on social media platform X, Alderoty clarified that the court's decision does not cancel Ripple's important legal victories, stating: Nothing in today's order changes the victory of Ripple ( that is XRP is not a security, etc. ). The head of legal at Ripple explained that the ruling pertains to procedural issues related to the dismissal of Ripple's cross-appeal, rather than any significant findings regarding XRP. "This is about procedural issues related to the dismissal of Ripple's cross-appeal," he said. His statement came after the decision of Judge Analisa Torres of the United States District Court for the Southern District of New York, who rejected a joint motion filed by Ripple and the SEC to dissolve the injunction and reduce the $125 million penalty to $50 million. Judge Torres ruled that this move was "procedurally improper," stating that it must be made under Rule 60, which governs relief from final judgments and requires proof of "exceptional circumstances." The injunction, prohibiting Ripple from future securities violations and the entirety of the penalties, remains in effect while the lawsuit continues. Alderoty emphasized that both Ripple and SEC are still in agreement on addressing the issue related to the sale of XRP, he stated: Ripple and SEC are in complete agreement to resolve this matter and will jointly reconsider this issue in court. The parties reached a temporary agreement on May 8 to resolve the issue by reducing penalties and lifting the ban. Although Judge Torres's decision temporarily halted that plan, it still opens the door for an extension and proper filing. The clarification from Ripple's legal director reassures stakeholders that the landmark decision in 2023 regarding XRP remains unaffected and signals that cooperation between the company and the regulator is ongoing.