- Ripple and the SEC have jointly requested a 60-day extension to pause their appeals as they await a district court decision on a proposed settlement that could reduce penalties and end the legal battle.
- The outcome hinges on Judge Torres’ ruling on whether the case qualifies for modification under exceptional circumstances.
In the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), both parties have once again requested the U.S. Court of Appeals for the Second Circuit to pause the appeals process—this time for another 60 days. The SEC filed a status report on June 17, 2025, requesting the court to continue holding the appeals in abeyance, with a new status update due by August 15.
This latest development follows a similar 60-day pause granted in April, which was intended to give both sides time to seek an indicative ruling from the U.S. District Court. The ruling would allow the court to consider a proposed settlement that includes vacating a permanent injunction on Ripple’s institutional sales of XRP and reducing the financial penalty from $125 million to $50 million.
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The district court, however, denied the initial motion last month, citing procedural issues and the failure to meet the legal standard of “exceptional circumstances” required to alter a final judgment. Undeterred, Ripple and the SEC recently refiled their motion, arguing that the settlement indeed qualifies as exceptional.
Now, the case remains in a holding pattern as both sides await a decision from U.S. District Judge Analisa Torres. If she grants the motion, the parties are expected to request a remand from the appellate court, allowing her to formally revise the judgment. If denied again, another appeal-related motion could follow before the August deadline.
A final resolution could be within reach—provided the district court supports the settlement. Should the judgment be modified, Ripple and the SEC are expected to withdraw their appeals entirely, potentially ending a case that has become a touchstone in the broader regulatory debate over cryptocurrency.
The next few days could prove critical, as Judge Torres is anticipated to issue her decision within a similar timeframe to her previous ruling, which took about a week. Meanwhile, the crypto community watches closely, hopeful for clarity in a lawsuit that has implications far beyond Ripple.