Ripple and the SEC both requested to have their process of appeal suspended simultaneously. They did this in anticipation of a highly important ruling from Judge Analisa Torres on a reinstated motion. The outcome could significantly influence XRP’s regulatory future.
Background of the Case
The SEC vs. Ripple has been under legal siege since 2020 when the SEC filed a lawsuit against Ripple Labs. The SEC accused sales of Ripple’s XRP as constituting unregistered sale of securities. There are recent indications that both sides are negotiating an out-of-court settlement of the suit.
Joint Request for Delay of Appeal
Ripple and the SEC, on 16th June 2025, requested an abatement of their appeals before the U.S. Court of Appeals for the Second Circuit. They requested this because the district court must make an indicative ruling. The two parties want to receive a favorable order that will allow them to reconsider the final judgment.
Implications of the Delay
The imposition of the hold-off on appeals is meaningful because it will allow the two to focus on potential settlement. The SEC has filed a proposal which will revitalize the settlement talks by making it subject to the filing, by August 15, 2025, of a status report. In the event that the indicative ruling cannot be had anymore, Ripple will wait until 2026 for further attempts at dismissal that will significantly impact its legal strategy.
Settlement Terms Under Discussion
Current negotiations are proposals to lift the following injunction on Ripple and determine the civil penalty at $125 million. Specifically, the SEC seeks to pay $50 million to itself and $75 million to Ripple. The shift in proposal is evidence of a possible realignment of the SEC enforcement policy on cryptocurrencies.
Market Reaction and Outlook Forward
XRP‘s price has been right behind the court decisions of the lawsuit. Worth around $2.24 today, XRP has varied according to the news of the lawsuit. While recently it increased by 2.3%, the token price fell 5.1% in the previous month.
Market analysts believe that a favorable court ruling could propel XRP to surge. It may also bring forward the listing of exchange-traded funds (ETFs) that are linked to XRP and awaiting approval by the SEC.
Community and Industry Insights
XRP community received the delay in the appeal positively by Ripple. Market participants expect the delay to alleviate some of the regulatory burden on Ripple and restore investor confidence. However, clarity is only expected after the final order by Judge Torres.
The joint appeal of Ripple and the SEC demands a deus ex machina in the years-long court battle. The two entities now wait with bated breath for the determination of a critical court.
Its decision will redefine other cryptos’ and XRP’s regulation. All stakeholders cannot afford to ease off the accelerator because what is decided here will further influence regulatory measures going forward.
