Why Did the Judge Reject the Settlement in the Ripple-SEC Case? Three Legal Sources Answered

A critical development occurred in the long-standing lawsuit between Ripple and the SEC (.

Judge Analisa Torres rejected the settlement plan presented between the parties. Fox Business reporter Eleanor Terrett stated in her assessment following this development that Judge Torres displayed a “tough stance.”

Eleanor Terrett commented after her discussions with three legal sources and participation in the live analysis by attorney John E. Deaton:

“Judge Torres is taking a serious stance here, not wanting the parties to easily agree and withdraw from the case; he is really pushing them to work through this process.”

According to Deaton’s analysis, from Torres’s perspective, the SEC has remained tightly bound to the narrative and legal strategy it has developed over the last five years. During this process, thousands of hours of judicial and legal effort were expended. However, now, the SEC’s retreat in a way that would undermine this process is being questioned by Judge Torres.

According to Terrett, although Torres has rejected the parties’ initial request, if the SEC and Ripple can legally demonstrate that it is necessary to withdraw the decision in terms of public interest and for XRP’s institutional investors, a clear path to proceed has been provided.

Ripple’s Chief Legal Officer Stuart Alderoty stated that Ripple will reevaluate this issue together with the SEC. Terrett added the following at this point:

“This is quite an unusual situation because they had been completely on opposite sides for almost five years. If the parties carry out the necessary work, it remains to be seen whether Judge Torres will soften or turn this into a more ‘political’ struggle.”