The long-running legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) may be nearing its conclusion.
Author: Sahil Thakur
The long-running legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) may be nearing its conclusion. On June 12, both parties filed a joint motion requesting an indicative ruling from Judge Analisa Torres that could dissolve a long-standing injunction and unlock over $125 million in escrowed penalty funds.
If approved, this would mark a final step toward settling the lawsuit that has spanned nearly five years and become a defining case for how U.S. securities laws apply to digital assets like XRP.
The motion asks Judge Torres to confirm whether she would, if permitted by the Court of Appeals, agree to dissolve the injunction and approve a proposed settlement. The terms include:
Because the case is currently under appeal, the court cannot modify its original judgment without a limited remand from the Second Circuit Court of Appeals. An indicative ruling would allow the appellate court to temporarily return the case to Judge Torres for action.
This is the second time Ripple and the SEC have attempted such a move. In May, Judge Torres rejected their request, citing a lack of “exceptional circumstances.” The latest filing attempts to address that by stressing the efficiency and finality a settlement would bring, along with the SEC’s recent trend of softening its stance in other crypto cases.
Legal observers say the ruling could reshape how institutions interact with XRP and possibly other tokens under regulatory scrutiny. A favorable decision would let Ripple , although likely under stricter conditions than before 2018.
XRP investors and market watchers are paying close attention. The token dropped from $2.57 in May to $2.06 earlier this month as regulatory uncertainty weighed on sentiment. XRP closed at $2.14 on June 13, down nearly 5% over two days, reflecting market anxiety ahead of a critical court decision.
The crypto legal community is divided on the strength of the filing.
Former SEC lawyer Marc Fagel noted the motion is designed to “avoid going forward with the appeal,” a logical move for both parties. However, pro-crypto attorneys such as Fred Rispoli and Bill Morgan criticized the filing for its lack of detail and weak justification.
Rispoli said the motion lacked the “long, detailed” explanation he believed was necessary and failed to address past SEC regulatory failures. Morgan expressed skepticism about the filing’s strength but speculated that Judge Torres might still grant the motion to bring the high-profile case to a close.
Should Judge Torres issue the indicative ruling, Ripple and the SEC will petition the Court of Appeals to return the case for modification. If the appeals court agrees, the final steps toward a settlement could unfold within weeks.
If the request is denied again, Ripple may proceed with its cross-appeal, while the SEC could continue appealing the court’s prior ruling that XRP’s programmatic sales do not constitute securities offerings.
The Ripple case began in December 2020, when the SEC accused the company of conducting an unregistered securities offering by selling XRP. Since then, the dispute has become one of the most closely watched legal cases in crypto, with major implications for regulatory clarity in the U.S.
A resolution would be a significant moment—not only for Ripple but for the broader digital asset industry, which continues to grapple with fragmented U.S. regulations and shifting enforcement strategies.
For now, all eyes remain on Judge Torres, whose ruling could end one of crypto’s most defining legal battles.
Dec 21, 2020: The SEC filed a lawsuit against Ripple Labs, CEO Brad Garlinghouse, and co-founder Chris Larsen, alleging that XRP was an unregistered security.
Dec 28, 2020: Coinbase announced the delisting of XRP, effective January 19, 2021.
Mar 3, 2021: Ripple’s executives challenged the SEC’s case, arguing a lack of fair notice.
Mar 22, 2021: A judge acknowledged XRP’s utility and differences from Bitcoin and Ethereum.
Aug 31, 2021: Discovery deadlines extended; documents regarding SEC internal deliberations were a central issue.
Jul 13, 2023: A major ruling found XRP programmatic sales on exchanges were not securities, though institutional sales were.
Oct 3, 2023: The court denied the SEC’s request to appeal the July ruling.
Oct 23, 2023: The SEC dropped its claims against Garlinghouse and Larsen.
Mar 22–May 20, 2024: Final phase for remedies briefs and redactions ahead of a decision on penalties.
Apr 2024: The SEC proposed penalties close to $2 billion against Ripple.
May 20, 2024: Ripple filed its response disputing the SEC’s remedies proposal.
Aug 7, 2024: Final judgment issued: XRP is not a security in itself; Ripple fined $125 million.
Oct 2024–Jan 2025: SEC filed and briefed an appeal but later decided not to proceed.
Jan 15, 2025: XRP price spiked as legal clarity improved.
Mar 19, 2025: The SEC officially ended the case by dropping its appeal.
May 15, 2025: A request to reduce Ripple’s penalty was denied by the court.
Jun 16, 2025: Deadline for post-judgment compliance and status updates.
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