The XRP community woke up to a sharp decline in price today following a major legal development that rattled investor confidence. According to CoinMarketCap, XRP dropped by 3.88% to trade at $2.38, as increased trading activity reflected rising market anxiety.
Judge Analisa Torres denied the proposed settlement between Ripple and the U.S. Securities and Exchange Commission, effectively extending the courtroom battle. Her ruling conveyed that she expects more than a handshake agreement from both parties.
According to @FoxBusiness journalist Eleanor Terrett, Judge Torres demands a thorough legal explanation before considering any change to her earlier rulings. After years of pursuing Ripple, the SEC must now justify why backing out of its stance serves the public interest.
Attorney John Deaton also noted that the judge could view the agency’s shift as weakening the credibility of its original legal efforts. After five years of legal pressure, the SEC’s sudden willingness to settle is now under scrutiny.
Also Read: Judge Issues Shocking Decision in Ripple vs. SEC Settlement – What is Happening?
Many in the XRP community had anticipated that a settlement would finally bring regulatory clarity. However, the court’s rejection has paused that momentum and introduced a new layer of uncertainty.
Ripple’s Chief Legal Officer, Stuart Alderoty, confirmed the company is open to working with the SEC to address the court’s concerns. Still, the conditions set by Judge Torres make clear that Ripple and the SEC must meet strict legal standards before any progress can be made.
Tightened Legal Standards Spark Market Reaction
The judge emphasized that any future agreement must demonstrate clear benefits for institutional investors and the broader public. This requirement has raised the legal stakes for both Ripple and the SEC.
Within 24 hours of the decision, the trading volume of XRP rose by about 20.60% to $5.52 billion. Analysts attribute this spike to investors exiting positions in response to the extended legal uncertainty.
The market cap also suffered and reached $139.87 billion, further demonstrating the wide-reaching effects of the verdict. The constant supply of 58.62 billion XRP on the market keeps adding pressure to the downward trend.
Source: CoinMarketCap
Judge Torres’s directive confirms that any future motion must follow detailed legal procedures, regardless of the case’s duration.
The price of XRP went down today because the court did not approve the settlement between Ripple and the SEC. Since the path is now tougher, each side must show that their collaboration benefits the public good before a final decision can be made.
Also Read: Ripple CLO Gets Recognition for His Role in The SEC Lawsuit – Brad Garlinghouse Reacts
