The Ripple v. SEC case has hit another standstill as both parties await court approval of a settlement. Though Ripple and the U.S. Securities and Exchange Commission (SEC) reached an agreement in May, the district court’s rejection of their motion delayed progress. The appeals process remains frozen as regulators and crypto markets watch for a pivotal decision.
Legal Gridlock Deepens As District Court Holds Back Settlement Approval
Ripple and the SEC filed a renewed joint motion on June 12 requesting approval to modify a prior judgment. The district court previously denied their initial motion on May 15, citing insufficient grounds. Without court consent, the signed settlement cannot take effect.
#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
The agreement signed will include Ripple paying the SEC a penalty of 50 million dollars and a retribution of 75 million dollars. It further suggests reversing the permanent injunction granted against Ripple in the previous proceedings. However, all these cannot be carried out before the court reverses its previous decision.
Both parties are waiting for a new ruling by the district judge, whose reply to the second motion has not yet been received. It is a hanging case, and the proposed changes in the law will only be legalized. This stay puts a stop to the settlement and the appeal setting.
Ripple v. SEC Deal Faces Delay
Ripple and the SEC formally signed the settlement on May 8, following extended discussions that started earlier this year. This deal marked a key shift in the Ripple v. SEC litigation, signaling potential closure. Yet the legal process to implement the agreement has proven more complex.
The original judgment found Ripple in violation for institutional sales but cleared it on XRP’s retail sale classification. Changing that judgment requires the court to issue an indicative ruling before it can modify the order. So far, the court has not agreed that conditions warrant that step.
On June 16, both parties filed a joint update with the Second Circuit Court of Appeals. They confirmed the signed deal but explained it cannot move forward without district court involvement. Consequently, they asked the appellate court to extend the pause on proceedings.
Appeals Process Frozen Amid Pending Court Decision
The SEC asked the appellate court to maintain the hold on the case while the district court reviews the new motion. Ripple agreed, and both parties promised to submit another joint update by August 15. The current freeze will stay in place until at least that date.
This further postponement contributes to the uncertainties of the whole crypto regulatory environment, as companies want certain legal clarity. Ripple v. SEC has attracted attention due to its implications for regulating digital assets. Though in May, it appeared that progress was on the way, the approval challenges have left the situation at a standstill.
Regulators, investors, and crypto platforms await the court’s next move, which could reshape future token offerings. Without resolution, billions in crypto investments remain in a regulatory gray area. The outcome of this case could set a precedent for other enforcement actions involving digital assets.
FAQs
What is the current status of the Ripple v. SEC case?
The case is on hold pending the district court’s decision on a motion to approve a settlement agreement.
What does the settlement agreement include?
Ripple agreed to pay $50 million to the SEC, while $75 million in penalties would be returned to the company.
Why was the first motion rejected?
The district court said it didn’t meet the required standard of “exceptional circumstances” for modifying its prior judgment.
What’s the role of the appeals court now?
The Second Circuit is waiting for the district court’s indication before resuming its review of the appeal.
Why is this case important for crypto regulation?
Ripple v. SEC could influence how digital assets and token sales are treated under U.S. securities law going forward.
Glossary of Key Terms
Ripple – A blockchain-based digital payment network that issued the XRP token.
SEC – The U.S. Securities and Exchange Commission, the federal agency that enforces securities laws.
Indicative Ruling – A statement by a court signaling its willingness to revise a previous judgment if permitted.
Institutional Sales – Token sales to institutional or accredited investors, often subject to stricter regulations.
Retail Sales – Token sales to the general public, typically involving different legal standards.
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