The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has taken another significant turn. Both parties have now requested an additional 60-day pause in their ongoing appeal case, according to a status report filed with the U.S. Court of Appeals for the Second Circuit.
This request follows the expiration of an initial 60-day freeze that was granted in April. The latest filing pushes the next scheduled status update to August 15, 2025, as both Ripple and the SEC await a critical decision from the district court.
Why the SEC and Ripple Want to Pause the Appeal
In April, Ripple and the SEC jointly filed a motion asking the Second Circuit to pause the appeal process temporarily. At that time, both parties disclosed that they had reached an in-principle agreement and intended to pursue an indicative ruling from the U.S. District Court that could allow for a formal settlement.
The core terms of this proposed agreement included two major changes:
- Vacating the permanent injunction on Ripple’s institutional XRP sales
- Reducing the penalty from the previously ordered $125 million to $50 million
The Second Circuit granted the initial request, ordering the SEC to file a status report by June 16, 2025.
District Court Rejected First Motion for Indicative Ruling
However, the path to resolution hasn’t been smooth. In mid-May, Judge Analisa Torres of the U.S. District Court denied the initial joint motion for an indicative ruling, citing procedural issues.
She explained that modifying a final judgment is a rare occurrence and typically reserved for exceptional circumstances. In her view, the motion failed to meet this standard and therefore could not proceed.
Parties Refile Motion With Justified Arguments
Despite the initial denial, Ripple and the SEC did not abandon their efforts. Last week, both parties refiled their motion for an indicative ruling, this time emphasising the exceptional nature of their proposed settlement and the public interest in bringing the prolonged case to a close.
This revised motion remains pending before Judge Torres, who has not yet issued a decision. Meanwhile, the SEC submitted its June 16 status report to the Second Circuit, requesting a 60-day extension of the appeal abeyance to allow the district court time to consider the refiled motion.
Related article: XRP ETF Milestone: Purpose to Launch First North American Fund
What Comes Next in the Ripple vs. SEC Case?
The next development hinges on Judge Torres’ response to the refiled motion. If she grants the indicative ruling, the SEC and Ripple plan to request a brief remand from the Second Circuit jointly. This would allow the case to return to the district court, where Judge Torres could modify the original final judgment by removing the injunction and lowering the penalty.
Once the final judgment is modified, the SEC and Ripple intend to withdraw their appeals entirely, effectively ending one of the most high-profile legal disputes in the crypto industry.
However, if the judge once again denies the motion, the parties may refile a modified version before the August 15 status deadline. Until then, the future of the case remains uncertain, though some legal watchers anticipate a ruling later this week based on Judge Torres’ previous turnaround times.
Final Thoughts
Ripple and the SEC’s continued collaboration suggest both parties are eager to settle the years-long legal dispute without further courtroom drama. Their coordinated filings and adjusted settlement proposals mark a rare moment of alignment between a regulator and a crypto company.
The next few days could be pivotal as Judge Torres weighs whether to allow a rare post-judgment modification, which could potentially shape how future crypto enforcement cases are handled.
