TLDR
- The SEC and Ripple have jointly requested to delay appeal proceedings until August 15, 2025
- Both parties are working to finalize a settlement agreement that would dissolve an injunction against Ripple
- The proposed settlement would redistribute a $125 million penalty with $50 million to SEC and $75 million returned to Ripple
- An earlier settlement motion was rejected by Judge Analisa Torres for failing to demonstrate “exceptional circumstances”
- The court’s decision on their renewed June 12 motion remains pending
The ongoing legal battle between the Securities and Exchange Commission (SEC) and Ripple Labs has taken a new turn. Both parties have jointly requested that the US Court of Appeals for the Second Circuit keep their appeals in abeyance while they work to finalize a settlement agreement. This latest development comes after months of legal maneuvering in one of the most watched cases in the cryptocurrency industry.
According to defense lawyer James Filan, the SEC and Ripple submitted the request as they await a decision from the district court on their renewed joint motion filed on June 12. The motion seeks to dissolve the injunction against Ripple and reallocate the $125 million civil penalty that was previously imposed.
#XRPCommunity #SECGov v. #Ripple #XRP In light of the pending motion for an indicative ruling, the parties have requested that the Second Circuit continue to hold the appeals in abeyance, with the @SECGov to file a status report by August 15, 2025.https://t.co/7oQvL5Rx7U
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) June 17, 2025
Under the proposed settlement terms, $50 million would be paid to the SEC while $75 million would be returned to Ripple. This arrangement would effectively resolve the case without further litigation, aligning with the SEC’s approach in other cryptocurrency enforcement actions.
The renewed filing became necessary after Judge Analisa Torres denied their initial joint motion for an indicative ruling in May. The judge stated that the original request failed to demonstrate the “exceptional circumstances” required to modify a final judgment.
Settlement Negotiations Background
The parties initially reached an agreement-in-principle in April, which led to the first abeyance request. This suggested that both sides were willing to find common ground after years of contentious litigation.
In their updated motion, the SEC and Ripple have provided additional justifications that they believe meet the court’s requirement for exceptional circumstances. They argue that the proposed settlement would efficiently end the case and save judicial resources.
The joint status report was filed as the June 16 deadline approached, with both parties seeking to temporarily pause the appeals process. FOX Business Journalist Eleanor Terrett shared the development on social media, noting that the pause would remain until August 15, 2025, when they will provide another status update.
“The SEC and Ripple have filed a status report with the Second Circuit and are asking it to keep a pause on the appeals while waiting on a decision from the district court,” Terrett wrote.
What Happens Next
The outcome of the case now hinges on the district court’s decision regarding the June 12 joint motion. If approved, the settlement could bring an end to the lengthy legal battle that has had the cryptocurrency community’s attention for years.
XRP lawyer Bill Morgan has expressed optimism about court approval, suggesting a resolution might be closer than previously thought. However, the recent request to pause the appeals process has created uncertainty about the timeline for the case’s conclusion.
If the court rejects the proposed settlement, it could lead to further delays and complications. The $125 million civil penalty currently sits in escrow, awaiting the court’s decision on how it will be distributed.
The SEC has agreed to provide a status report by August 15, 2025, which should offer more clarity on the case’s trajectory. Until then, the cryptocurrency community and Ripple investors will be watching closely for any developments in this pivotal case.
The resolution of this case could have lasting implications for how digital assets are regulated in the United States, particularly regarding the classification of cryptocurrencies as securities.
