Judge Torres Blocks SEC and Ripple Settlement Motion: Lawyers Comment

The joint motion, in which the U.S. SEC (Securities and Exchange Commission) and Ripple asked the court to approve a case settlement, was denied by New York federal judge Analisa Torres. According to a court ruling shared by lawyer James Filan, the parties did not follow the proper legal process and needed to refile their request under the appropriate rule.

In May 2025, after more than four years of legal battle, the U.S. SEC and Ripple filed a settlement agreement. Based on the motion, the SEC dropped claims against Ripple over the illegal sale of XRP coins and violations of securities laws.

In their request, the parties agreed to settle the case with a $50 million fine by Ripple, down from the initially demanded $2 billion and the $125 million penalty imposed by Judge Torres in August 2024.

As Judge Torres denied the settlement request by the SEC and Ripple, lawyers and community members are discussing the impacts of the ruling.

Ripple CLO Stuart Alderoty Says Nothing in the Order Changes Ripple’s Win 

Stuart Alderoty, Chief Legal Officer of Ripple, says the ruling by Judge Torres is focused on procedural concerns. According to Alderoty, it does not affect Ripple’s previous victories in court, including the decision that XRP is not a security.

As for next steps, Ripple and the SEC will revisit the issue together with the court. The lawyer added that the parties are fully in agreement to resolve the case.

John Deaton, Meanwhile, Believes Judge Torres Needs Stronger Grounds to End the Case

In a live analysis on X, lawyer John Deaton shared his take on the decision, breaking down several parts of the ruling. The document states: “What matters is the remedy sought, not how the parties are seeking [it],” referring to the proposed $50 million penalty.

Deaton believes Judge Torres didn’t simply approve the settlement and move on because, in her view, the case raises broader concerns. There are no victims, and Ripple, being a private company, made institutional sales to banks and other willing business partners.

According to Deaton, Judge Torres has overseen the case for four years and expects more compelling reasons to close it under the proposed terms. The lawyer anticipates that a few more months will be needed before the case is finally resolved.