The ongoing legal saga between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has taken a dramatic turn. Both parties have jointly requested the Second Circuit Court of Appeals to hold their appeals until August 15, 2025, as they await an important ruling from District Judge Analisa Torres.
This move signals a potential breakthrough in a case that has gripped the crypto world, with a status report due by mid-August to update the court on settlement progress.
Journey Toward Resolution
The Ripple-SEC dispute began in December 2020, when the SEC sued Ripple, alleging that its XRP token sales constituted unregistered securities offerings. The case has dragged on for over four years, with a significant ruling in August 2024 ordering the blockchain payment platform to pay a $125 million penalty and imposing an injunction on certain XRP sales.
Seeking to end the litigation, the blockchain payment platform and the SEC reached a settlement agreement in early 2025, proposing to reduce the fine to $50 million and lift the injunction.
First, the parties reportedly filed for an indicative ruling—a signal from Judge Torres on whether she would approve the deal—in May 2025, but it was rejected for procedural reasons. On June 12, 2025, they refiled, addressing the court’s concerns, marking their second attempt to secure this ruling and pause the appeals process.
This follows an earlier motion in April 2025 to hold appeals in abeyance, demonstrating persistent efforts to finalize a settlement.
Ripple-SEC Saga Nears End
If Judge Torres grants the indicative ruling, it could end the appeals, dissolve the injunction, and release $75 million of the frozen penalty back to Ripple, potentially resolving the case by late 2025. A denial, however, could delay Ripple’s dismissal efforts until 2026, prolonging uncertainty for XRP’s regulatory status and impacting investor confidence.
Recent SEC dismissals of crypto cases, like those against Coinbase and Consensys, suggest a shifting regulatory stance, possibly influenced by the SEC’s Crypto Task Force under Acting Chair Mark Uyeda. These dismissals, reached by joint stipulation, align with Ripple’s strategy, raising hopes for a favorable outcome.
However, despite the prolonged legal battle, Ripple remains optimistic, with CEO Brad Garlinghouse calling recent developments a “de facto” end to the case. With XRP gaining 13% in value recently and the upcoming launch of a Purpose XRP ETF in Canada, Ripple’s outlook shines bright, poised to reshape the crypto landscape once the legal clouds clear.
