U.S. District Court Judge Analisa Torres denied the joint motion for settlement submitted by the SEC and Ripple. The motion sought to have the court lift the injunction in the August 2024 judgment and approve the release of $50 million from the $125 million civil penalty escrow to be paid to the SEC, with the remaining funds returned to Ripple. The judge found that the application did not follow the procedural requirements outlined in Rule 60 of the Federal Rules of Civil Procedure. Ripple's Chief Legal Officer stated that they would refile a settlement application that complies with the rules.

Legal experts analyze that both parties need to explain the reasons for the settlement in detail according to Rule 60 standards, including the basis for the SEC's decision to drop other charges, etc. It is expected that the complete process will take another 3-5 weeks. The judge emphasized that this dismissal is only related to procedural defects and does not involve a substantive review of the settlement content.