A legal expert has clarified that the U.S. Securities and Exchange Commission (SEC) faces no strict deadline to withdraw its appeal in the ongoing Ripple lawsuit. Despite growing speculation, the upcoming August 15 date does not require an appeal withdrawal. Attorney Morgan stated on social media that the SEC is not legally bound to end its appeal by mid-August. While many anticipate significant developments, the date only marks a procedural requirement.
Instead, on August 15, the SEC must file a joint status update with the appellate court. This report could include a withdrawal notice, a request for more time, or another procedural step. Morgan emphasized that while the update is necessary, it does not guarantee a settlement or final resolution.
Ripple and SEC’s Attempt to Revise Ruling
Leading up to this deadline, Ripple and the SEC attempted to revise Judge Analisa Torres’s August 2024 ruling. Both parties agreed on new settlement terms, including the removal of an injunction on Ripple’s future institutional sales and a reduced fine from $125 million to $50 million.
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They previously requested a 60-day pause to negotiate this revised settlement, which ended in June. The extension now expires in August. However, Judge Torres denied their motion to alter the ruling, noting they failed to prove exceptional circumstances that would justify relief.
Misinterpretation of August 15
Due to these developments, many in the XRP community believed August 15 would bring a settlement announcement. Morgan’s statement tempers these expectations, clarifying that the date only ensures the SEC provides a status report to the court.
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Ripple CEO Brad Garlinghouse previously hinted that the company intends to withdraw its appeal entirely. He stressed that Ripple wants to avoid further legal drama and focus on business growth. Garlinghouse also suggested the SEC might take similar action, but this remains uncertain.
As the five-year legal battle approaches another key date, observers await the SEC’s next move. The coming weeks are expected to bring more clarity, but not necessarily a resolution.
