- SEC appeal against Ripple remains paused, not dropped, awaiting Judge Torres’ ruling.
- Settlement hinges on Judge Torres issuing an indicative ruling to modify prior judgment.
- Judge’s decision by mid-August will either finalize settlement or resume the appeal process.
The ongoing legal dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) remains unresolved as of June 2025. Contrary to circulating reports that the SEC has dropped its appeal, the case is officially on hold, awaiting a crucial indicative ruling from Judge Analisa Torres. This decision will determine whether the parties can finalize a $50 million settlement or if the appellate process will continue.
The appeal filed by the SEC against Ripple is currently in abeyance, meaning it is temporarily suspended but not dismissed. Both Ripple and the SEC agreed to pause the case while Judge Torres reviews a motion that could allow modification of an earlier judgment. The U.S. Court of Appeals for the Second Circuit approved this extension through August 15, 2025, to provide time for the lower court’s consideration.
Australian lawyer Bill Morgan, who has frequently clarified misconceptions surrounding this case, emphasized that the appeal remains active. He stated that the continuation of the settlement depends entirely on a positive indicative ruling from Judge Torres. Without her approval, the settlement cannot proceed and the appeal will likely resume.
Except the Appeal is still on foot and in abeyance and performance of the settlement agreement between the SEC and Ripple which will end the appeal depends on a positive indicative ruling from Judge Torres which she may not give in order to finally end this horrible anti-retail… https://t.co/wZQqx7rns7
— bill morgan (@Belisarius2020) June 26, 2025
Settlement Dependent on Judge Torres’ Indicative Ruling
The proposed $50 million settlement between Ripple and the SEC includes lifting the injunction that currently restricts XRP’s institutional sales. For the settlement to move forward, Judge Torres must issue an indicative ruling signaling her willingness to reopen and modify her prior decision. This procedural step is essential for the appellate court to dismiss the ongoing appeal.
Earlier attempts to secure this ruling were delayed by a procedural error. On May 8, both parties jointly requested an indicative ruling citing Federal Rule 62.1. However, the judge denied the motion, indicating the proper rule to invoke was Rule 60(b), which governs motions to reopen final judgments.
Following this, the SEC and Ripple submitted a corrected motion on June 12. They also informed the appellate court of their request to maintain the pause in proceedings while the new motion undergoes review.
Next Steps and Timeline
Judge Torres’s ruling is expected soon, with the deadline for the case’s abeyance set for mid-August 2025. A favorable ruling would return the case to her court, allowing Ripple and the SEC to finalize the settlement and move to dismiss the appeal. If the ruling is unfavorable, the appeal process will resume, extending the litigation.
This legal process points out the key role of the district court judge in determining the case’s outcome. Until Judge Torres acts, the litigation status remains uncertain but paused, maintaining a legal limbo for Ripple, the SEC, and XRP stakeholders.
