Ripple Labs and the U.S. Securities and Exchange Commission (SEC) are nearing the end of their long-running legal battle over XRP, but key procedural hurdles remain. The case, which began in December 2020, has seen a series of rulings, motions, and appeals. As of early 2026, the outcome hinges on final court actions and regulatory decisions.
What Just Happened
Ripple and the SEC jointly filed a motion in mid-2025 seeking an “indicative ruling” from Judge Analisa Torres. The motion proposed lifting the injunction that barred institutional XRP sales and reducing Ripple’s $125 million penalty to $50 million, with $75 million returning to Ripple.
However, Judge Torres denied the motion in June 2025, calling it procedurally improper under Federal Rule of Civil Procedure 60. She ordered the clerk to terminate the motion, leaving the injunction and penalty intact.
Why It Matters Now
This denial resets the legal timeline. Without the indicative ruling, both parties must decide whether to resume appeals or pursue a revised settlement. The next key procedural milestone is August 15, 2025, when the SEC must file a status report with the court.
Legal experts like Fred Rispoli expect a settlement could still emerge, possibly involving a $50 million penalty. Meanwhile, attorney Bill Morgan has dismissed speculation that the case will drag into 2026, noting that a resolution is likely unless Judge Torres rejects a new motion.
Background Context
- July 2023: Judge Torres ruled that XRP sales on public exchanges are not securities, but institutional sales are.
- August 2024: A $125 million penalty was imposed, and an injunction was issued.
- March 2025: Ripple announced the SEC had withdrawn its appeal, though the SEC did not formally confirm this. Ripple also withdrew its cross-appeal.
Market and Legal Reactions
The denial of the joint motion triggered a modest XRP price drop of around 3–5%. Investors remain watchful, with many expecting a revised filing by mid-2025.
Legal analysts emphasize that the case’s resolution depends on procedural compliance. Former SEC attorney Marc Fagel noted that internal SEC processes, including a commission vote, are required before the appeal can be formally withdrawn.
What Comes Next
- Refile Motion: Ripple and the SEC may submit a revised motion that addresses procedural concerns.
- Appeals or Settlement: Either side could resume appeals, or both could jointly withdraw them to finalize the case.
- Court Deadline: The SEC must file a status report by August 15, 2025.
Ripple’s Legal Strategy
Ripple’s push to lift the injunction reflects its desire to resume institutional XRP sales in the U.S. The company continues to assert that XRP is not a security in secondary market transactions.
Legal experts see the joint motion as a strategic effort to close the case efficiently. Bill Morgan believes the procedural misstep was a minor setback and that resolution is still likely in the near term.
Conclusion
The SEC vs Ripple lawsuit remains unresolved but appears close to conclusion. Judge Torres’ denial of the joint motion has delayed finality, yet both parties seem aligned toward settlement. The next critical moment arrives on August 15, 2025, when the SEC must update the court. Whether through a revised motion or appeal withdrawal, the case may soon reach its end—potentially unlocking institutional XRP sales and removing a major regulatory overhang.
