Background Information: On May 16, 2025, District Court Judge Analisa Torres rejected the settlement proposal between Ripple and the U.S. Securities and Exchange Commission (SEC), citing procedural impropriety and the ongoing appeal of the case.
Main Event: The judge noted that the request was outside her jurisdiction and would be denied even if within jurisdiction due to failure to meet the requirements of Rule 60. Nevertheless, attorney Bill Morgan believes the settlement agreement remains valid.
Next Steps: Attorneys suggest that both parties may seek a directive ruling from the judge and then apply to the appellate court for a limited remand to implement the settlement terms agreed upon by both parties. If approved, the parties may submit a motion to the judge to seek the originally agreed relief.
Additionally, with the injunction lifted and fines reduced from $125 million to $50 million, the parties may apply to the Second Circuit Court of Appeals to dismiss the appeal and cross-appeal. Attorneys emphasize that the parties can submit a procedurally correct joint motion.
Significance: Ripple's Chief Legal Officer Stuart Alderoty stated that both parties will cooperate in court to address the issues raised by the judge, demonstrating a positive collaborative attitude. The progress of this case holds significant implications for the cryptocurrency industry.

Prominent attorney and cryptocurrency personality Bill Morgan has outlined the next possible steps for crypto giant Ripple and the U.S. Securities and Exchange Commission after District Court Judge Analisa Torres rejected the proposal between both parties.On May 16, 2025, Judge Torresdeniedthe joint request from Ripple and the SEC because it was a procedure she considered improper. Torres added that the request was also not within her jurisdiction because the case is still under appeal. However, if it was, the Judge asserted that the motion would still be denied, as it did not address Rule 60, which oversees the justification of relief requests from final judgments.While the court’s denial focused solely on the procedure and did not hint at any disapproval of the settlement, the procedural situation has now prolonged the case.However, attorney Bill Morgan maintains that the settlement agreement has not been rendered useless; it remains whole.Possible case scenarios for Ripple and the U.S. SECThe attorney added that should an indicative ruling be obtained from the Judge, both parties could file a motion to the Court of Appeals for a limited remand to seek relief agreed between Ripple and the SEC from Judge Analisa Torres.If the limited remand is granted, both parties could file a motion with the Judge seeking the relief they initially agreed upon.Bill Morgan furtherexplainedthat with the dissolution of the injunction andthe payment of the $125 million civil fine, now reduced to $50 million, both parties could file a motion with the Second Circuit Court to dismiss the Appeal and cross-appeal.At this stage, Bill Morgan explained that another joint motion by both parties, which is considered “procedurally correct”, could be filed.Notably, the attorney conclusively acknowledged the recent remarks made by Stuart Alderoty, the Chief Legal Officer at Ripple, who is convinced that both Ripple and the U.S. regulator will work together in court while addressing the issues raised by the Judge.

Latest Developments in the XRP Lawsuit: Lawyer Analyzes Ripple and SEC's Next Steps After Judge Rejects Settlement