- XRP has fallen 22% since May 16 after the settlement denial.
- Judge Torres rejects Ripple-SEC joint settlement motion.
On May 16, 2025, Judge Torres denied a combined motion submitted by Ripple and the SEC to complete settlement terms. As a result, the price of XRP dips by 22%.Currently, the cryptocurrency is trading at $2.16 with a 1.69 percent loss in the last 24 hours. The ruling has dashed investor confidence, leading to a serious sell-off across exchanges.
Ripple’s motion to resolve key parts of the ongoing legal battle between itself and the SEC was denied. Uncertainty about XRP’s future regulatory status, coupled with no settlement in sight, is causing market volatility.
Many have sold off holdings, fearing prolonged legal battles. RIP’s present price is far away from the most recent highs, however, it still surpasses its yearly low of $1.85.
Ripple-SEC Case Faces Critical Juncture
A settlement status update must be filed by the SEC by June 16, 2025, a deadline that could decide Ripple’s legal and financial fate. This update will show what the state of negotiations is or what transpires if the case goes further.
Ripple’s earlier legal win, where it had been declared that XRP was not a security in some transactions, remains unchanged by the court’s rejection. A legal source added that the ruling does not overturn Ripple’s earlier win, but the lack of a settlement holds pressure on the price of XRP. An ongoing case continues to cast a shadow on the cryptocurrency market outlook.
In 2020, the SEC sued Ripple for its alleged involvement with unregistered securities offerings of XRP sales. XRP is not a security for cross-border payments, Ripple claimed. The dispute has taken its time to resolve, partly favored by Ripple in its 2023 ruling, but there are still unsettled settlement terms.
Besides broader market trends, the volatility of the cryptocurrency has been outpacing Bitcoin and Ethereum, also seeing a decline, but at less severe rates
Market Repercussions and Investor Reactions
Investors have been deeply worried, with the 22 percent drop from the May 16 peak. Ripple’s XRP price dropped sharply after it said the company was not subject to the CFTC’s regulations after the court ruled on Sunday. Volume on trading platforms surged with sell orders as the court ruling saw XRP’s market cap drop by billions. Analysts are watching for further declines if negativity continues after reaching a critical support level at $2.16.
Ripple’s technology is used by financial institutions for cross-border payments use cases, and hence it’s a strong use case. According to a market source, “XRP’s fundamentals are still strong, but legal clarity is necessary for price rebound.”
The markets could be eased or amplified by the June 16 deadline. Hopefully, an update from the SEC could be the much-needed confidence booster, or more delays would make things worse for XRP.
