XRP Falls 18% Following Ripple-SEC Settlement Motion Rejection
- XRP fell 18% following the Ripple-SEC joint motion rejection.
- SEC must submit a settlement update by June 16.
- Trump–Musk feud and ETF outflows weigh on market mood.
The legal war of Ripple Labs and the SEC of the United States reached another precarious stage on June 5, as a court deadline stared down investors. Since Judge Analisa Torres denied the joint motion filed for an indicative settlement ruling on May 15, XRP price has dropped by 18%, with investors pondering over the future of XRP amid the case.
In April 2025, the U.S. Court of Appeals approved the joint motion to stay the SEC’s appeal and allowed both parties to negotiate based on a settlement. The next step of these negotiations requires the SEC to submit a settlement status update on June 16, which is now considered a key date, both for Ripple’s legal strategy and how well XRP fares in market trading.
Ripple’s proposed settlement terms include lifting the ban on institutional XRP sales and reducing the SEC’s $125 million fine. A favorable court signal was necessary to drop Ripple’s cross-appeal and to potentially resolve the SEC’s appeal related to XRP’s programmatic sales.
With the court denying the joint motion, Ripple’s strategy has hit a legal bottleneck. Pro-crypto legal expert Bill Morgan noted,
“Something has to happen by then [June 16] or the Appeal and Cross-appeal continues and a briefing is due from Ripple.”
Investors appear to be reacting pessimistically to the uncertainty, with XRP failing to maintain the critical $2 support level, further dragging sentiment in an already cautious crypto market.
As of June 6, 2025, XRP is trading at approximately $2.13, reflecting a 2.79% decline over the past 24 hours.
This downturn follows a peak of $2.27 on June 4, marking a 6% drop over the past two days. The decline is attributed to bearish market sentiment and investor caution amid ongoing legal proceedings between Ripple and the SEC.
Trump–Musk Feud Sends Shockwaves Through Crypto
Yet another great source of volatility came from the President’s interference with Tesla CEO Elon Musk, which rattled investor confidence in general. The threat by Trump to yank away government contracts and subsidies from Musk saw Tesla stock drop 14.26 per cent, which also sent crypto market indexes with it.
Market analyst Tony Sycamore at IG gave the view:
“The dramatic fallout between Elon Musk and President Trump this week serves as a jarring wake-up call…the crypto sector cannot take the White House’s support for granted indefinitely.”
With both Musk and Trump previously vocal in support of crypto, particularly Bitcoin, this clash has undermined expectations for consistent pro-crypto policy from political leadership.
Bitcoin ETF Outflows Add to Market Gloom
Further compounding bearish sentiment, Bitcoin spot ETFs experienced significant outflows on June 5. According to Farside Investors:
- ARKB reported $102 million in net outflows.
- FBTC saw $80.17 million in outflows.
- BITB posted $36.7 million in outflows.
In total, the U.S. Bitcoin spot ETF market lost $278.4 million in a single day compared to a net inflow of $87 million just the day before.
The ETF redemptions reflect growing investor caution amid macro uncertainty and political instability, with ripple effects hitting XRP and broader altcoin markets.
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XRP Falls 18% Following Ripple-SEC Settlement Motion Rejection
- XRP fell 18% following the Ripple-SEC joint motion rejection.
- SEC must submit a settlement update by June 16.
- Trump–Musk feud and ETF outflows weigh on market mood.
The legal war of Ripple Labs and the SEC of the United States reached another precarious stage on June 5, as a court deadline stared down investors. Since Judge Analisa Torres denied the joint motion filed for an indicative settlement ruling on May 15, XRP price has dropped by 18%, with investors pondering over the future of XRP amid the case.
In April 2025, the U.S. Court of Appeals approved the joint motion to stay the SEC’s appeal and allowed both parties to negotiate based on a settlement. The next step of these negotiations requires the SEC to submit a settlement status update on June 16, which is now considered a key date, both for Ripple’s legal strategy and how well XRP fares in market trading.
Ripple’s proposed settlement terms include lifting the ban on institutional XRP sales and reducing the SEC’s $125 million fine. A favorable court signal was necessary to drop Ripple’s cross-appeal and to potentially resolve the SEC’s appeal related to XRP’s programmatic sales.
With the court denying the joint motion, Ripple’s strategy has hit a legal bottleneck. Pro-crypto legal expert Bill Morgan noted,
“Something has to happen by then [June 16] or the Appeal and Cross-appeal continues and a briefing is due from Ripple.”
Investors appear to be reacting pessimistically to the uncertainty, with XRP failing to maintain the critical $2 support level, further dragging sentiment in an already cautious crypto market.
As of June 6, 2025, XRP is trading at approximately $2.13, reflecting a 2.79% decline over the past 24 hours.
This downturn follows a peak of $2.27 on June 4, marking a 6% drop over the past two days. The decline is attributed to bearish market sentiment and investor caution amid ongoing legal proceedings between Ripple and the SEC.
Trump–Musk Feud Sends Shockwaves Through Crypto
Yet another great source of volatility came from the President’s interference with Tesla CEO Elon Musk, which rattled investor confidence in general. The threat by Trump to yank away government contracts and subsidies from Musk saw Tesla stock drop 14.26 per cent, which also sent crypto market indexes with it.
Market analyst Tony Sycamore at IG gave the view:
“The dramatic fallout between Elon Musk and President Trump this week serves as a jarring wake-up call…the crypto sector cannot take the White House’s support for granted indefinitely.”
With both Musk and Trump previously vocal in support of crypto, particularly Bitcoin, this clash has undermined expectations for consistent pro-crypto policy from political leadership.
Bitcoin ETF Outflows Add to Market Gloom
Further compounding bearish sentiment, Bitcoin spot ETFs experienced significant outflows on June 5. According to Farside Investors:
- ARKB reported $102 million in net outflows.
- FBTC saw $80.17 million in outflows.
- BITB posted $36.7 million in outflows.
In total, the U.S. Bitcoin spot ETF market lost $278.4 million in a single day compared to a net inflow of $87 million just the day before.
The ETF redemptions reflect growing investor caution amid macro uncertainty and political instability, with ripple effects hitting XRP and broader altcoin markets.
Highlighted Crypto News Today:
Read More