The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) continues. A significant court ruling is anticipated, but several procedural hurdles remain.
Current Status of the Lawsuit
As of June 18, 2025, the joint motion filed by Ripple and the SEC seeks to modify the court's previous ruling, reducing Ripple's penalty from $125 million to $50 million. This motion could significantly impact the case's trajectory. However, pro-XRP attorney Bill Morgan noted that even if Judge Torres issues her ruling soon, it will not conclude the matter entirely. "This extension only pertains to the appeal process, not the judge's ruling on the motion itself," he stated on social media.
Background Leading to This Point
The path to a possible settlement began with an agreement signed by both parties on April 23 and May 8. They initially filed a joint motion under Federal Rule of Civil Procedure 62.1, aiming for an indicative ruling. However, the court initially denied the request due to a procedural misstep concerning Rule 60. To address this, Ripple and the SEC submitted a revised motion that properly invoked Rule 60, allowing the court to reconsider final judgments in light of new evidence or circumstances. This strategic move underscores a significant shift in regulatory posture and mutual agreement, making the case ripe for modification.
Future Prospects for Ripple and SEC
Once Judge Torres issues her ruling, further steps will depend on her decision. If she rules favorably, Ripple and the SEC will file a motion with the Court of Appeals for a limited remand, allowing the district court to act on the case even while an appeal is underway. Following this remand, both parties will return to Judge Torres with a formal request to enforce the settlement terms, which includes paying the reduced fine. The final steps involve filing for the dismissal of the appeal and cross-appeal at the Second Circuit Court of Appeals.
Despite the optimism, legal analysts caution that procedural formalities can’t be rushed. The anticipated ruling from Judge Torres could serve as a turning point, but the road to finality is still fraught with challenges. As the XRP community awaits Judge Torres’ decision, there is hope for a favorable outcome that could significantly reshape the regulatory landscape.
