Ripple Labs’ Legal Maneuver May Conclude SEC Battle
In a significant legal move, Ripple Labs is hopeful that its prolonged five-year dispute with the U.S. Securities and Exchange Commission (SEC) might soon reach a resolution. On June 17th, Ripple submitted a two-page supplemental letter requesting U.S. District Judge Analisa Torres to provide an “indicative ruling.” This ruling would potentially dissolve the injunction from last August’s final judgment and endorse a mutually agreed reduction of the civil penalty to $50 million.
Anticipating an XRP Ruling Soon?
The recent filing comes in the wake of a joint motion by the SEC and Ripple on June 12th, renewing their motion under the stringent Rule 60(b)(6) standard. The filing argues that nullifying the “obey-the-law” injunction would not modify Ripple’s fundamental obligations, as Ripple, like any other market participant, must adhere to the law irrespective of any injunction.
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If Judge Torres grants the requested indicative ruling, the procedural steps to conclude the litigation will be set in motion. This involves petitioning the U.S. Court of Appeals for the Second Circuit for a limited remand. Once the district court officially dissolves the injunction and enforces the reduced penalty, both parties plan to dismiss their respective appeals. The joint brief points out “exceptional circumstances,” highlighting that a settlement now would conserve judicial resources, minimize appellate risk, and bring Ripple’s case in line with other digital-asset defendants whose cases have been dismissed by the SEC.
Fred Rispoli, a crypto defense attorney, expressed cautious optimism regarding the supplemental letter. On social media platform X, he remarked that although the letter is concise, it is a critical attempt to address three key issues—highlighting the supremacy of appellate courts, the fact that lifting the injunction does not alter Ripple’s legal responsibilities, and the SEC’s decision to make Ripple a pioneering test case.
“Though not entirely convinced, I am more hopeful this could lead to a resolution,” Rispoli commented. In response to community queries, he predicted that Judge Torres is likely to make a decision soon, potentially triggering the remand process and formally ending the case.
Steps Remaining for Resolution
Pro-XRP attorney Bill Morgan outlined the timeline for settlement in an update on June 18th. The parties signed a settlement agreement on April 23rd, followed by SEC approval on May 8th. They secured a 60-day pause of the appellate calendar until June 16th and filed their second, procedurally compliant motion on June 12th. The remaining step is Judge Torres’s indicative ruling. Once issued, the subsequent actions—remand, formal order, payment of the $50 million penalty, and appeal dismissals—could be accomplished in the coming weeks.
While awaiting the judge’s decision, the appeals remain on hold. In a status report dated June 17th, both parties requested the Second Circuit to maintain the case in suspension, with a promised update by August 15, 2025. The filing reiterates that the settlement requires Commission approval but indicates both parties’ preference to resolve the issue in the district court if Judge Torres consents.
The district judge’s summary-judgment ruling from July 13, 2023, which stated that XRP sales on exchanges were not investment contracts, remains intact. Last year, she imposed a $125 million penalty and the contested injunction. The renewed motion seeks to modify only these remedial provisions, leaving the case’s merits unchanged.
For XRP investors, the timeline is crucial. If Judge Torres issues the indicative ruling shortly, the Second Circuit could remand the case before the August 15th deadline, facilitating the parties to implement their agreement and end the litigation during the summer recess. If denied, the case will return to the appellate process, where briefing has been on pause since April. Rispoli remains optimistic about Ripple’s prospects, stating, “This could lead to a favorable outcome for us.”
As of the latest update, XRP is trading at $2.16.
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