US District Judge Analisa Torres rejected a joint request made by the SEC and Ripple Labs for an indicative ruling, deeming it "procedurally improper." The decision was rendered on May 15, clarifying that even if her court regained jurisdiction, she would still deny the motion due to procedural deficiencies.

This development casts uncertainty over the settlement agreed upon by Ripple and the SEC. The settlement aimed to reduce Ripple's civil penalty from $125 million to $50 million and eliminate an injunction limiting certain token sales. However, Judge Torres pointed out that the joint request did not meet the criteria set by Federal Rule of Civil Procedure 60, which demands proof of "exceptional circumstances" to modify or dissolve a court's final judgment.

As a result, the initial penalties and injunction remain in place unless both parties submit a revised motion addressing these procedural lapses. The legal suit is still ongoing, with both Ripple and the SEC halting their appeals in anticipation of the joint settlement being approved. Unless a corrected motion is filed, the appeals procedure may resume following Judge Torres' denial.

The denial had an immediate impact on the market, with XRP's price dropping by nearly 5% shortly after the ruling was announced. Despite enjoying a 15% gain in the previous month, the altcoin's value reacted to the news. The proposed settlement was seen as a potential resolution to the prolonged legal dispute by investors and stakeholders.

The SEC and Ripple narrative, now in its fifth year, continues amid Ripple's advancements in the US market within the context of evolving crypto regulations and enforcement dynamics. Nonetheless, the unresolved XRP lawsuit remains a significant challenge for Ripple, likely prolonging the legal complexities surrounding the case.