Breaking: SEC and Ripple Jointly Seek Delay in Pivotal XRP Appeals Case

The legal showdown between Ripple and the SEC takes an unexpected turn—both sides just hit pause.

In a rare moment of agreement, the regulator and crypto heavyweight filed a joint motion to extend deadlines in their years-long battle over XRP''s status. No reasons given—but insiders smell strategic maneuvering.

Market watchers shrug—after all, when has bureaucracy ever moved at blockchain speed? Meanwhile, XRP holders brace for another chapter in this regulatory Groundhog Day.

Funny how even sworn enemies can unite when it means kicking the can down the road—Wall Street would be proud.

TLDR

• SEC and Ripple Labs filed a joint status report asking the Second Circuit Court to delay appeal proceedings until August 15, 2025
• Both parties are waiting for the district court to decide on their June 12 joint motion to dissolve the injunction and modify the $125 million penalty
• The proposed settlement would give $50 million to the SEC and return $75 million to Ripple Labs
• Judge Analisa Torres previously rejected their initial motion in May for failing to show “exceptional circumstances”
• The updated motion argues the settlement would resolve the case efficiently and aligns with SEC’s approach in other crypto cases

The SEC and Ripple Labs have asked the US Court of Appeals for the Second Circuit to pause their ongoing appeals while they work to finalize a settlement agreement. The request comes as both parties await a crucial decision from the district court on their proposed settlement terms.

The companies submitted a joint status report on June 16, seeking to keep the appeals in abeyance until August 15, 2025. Defense lawyer James Filan reported that the SEC agreed to provide a status update by that date.

#XRPCommunity #SECGov v. #Ripple #XRP In light of the pending motion for an indicative ruling, the parties have requested that the Second Circuit continue to hold the appeals in abeyance, with the @SECGov to file a status report by August 15, 2025.https://t.co/7oQvL5Rx7U

— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) June 17, 2025

Settlement Terms Under Review

The settlement negotiations center around a June 12 joint motion filed with the US District Court for the Southern District of New York. The motion seeks to dissolve the injunction against Ripple and restructure the $125 million civil penalty distribution.

Under the proposed terms, the SEC WOULD receive $50 million while $75 million would be returned to Ripple Labs. This represents a modification of the original penalty structure established in the case.

The current motion follows the court’s rejection of an earlier settlement attempt in May. Judge Analisa Torres denied the initial joint motion for an indicative ruling, stating it failed to demonstrate the “exceptional circumstances” required to modify a final judgment.

Court Requires Stronger Justification

In response to the May rejection, both parties updated their motion to provide the required justifications. The renewed filing argues that the proposed settlement would efficiently resolve the case without further litigation.

The parties also contend that their settlement approach remains consistent with the SEC’s enforcement strategies in other cryptocurrency cases. This argument aims to satisfy the court’s requirement for exceptional circumstances.

The renewed motion currently remains pending before the district court. Both parties are strategically positioning themselves while awaiting this decision.

FOX Business journalist Eleanor Terrett confirmed the filing details in a recent social media post. She noted that both parties are asking the appeals court to maintain the pause while waiting for the district court’s ruling.

Translation: The @SECGov and @Ripple have filed a status report with the Second Circuit and are asking it to keep a pause on the appeals while waiting on a decision from the district court. https://t.co/YEeEjlt5yX

— Eleanor Terrett (@EleanorTerrett) June 17, 2025

The joint request to hold appeals in abeyance suggests both parties anticipate a potentially decisive ruling from the district court. Legal experts view this as a strategic MOVE to avoid complications in the appeals process.

The case has drawn widespread attention in the cryptocurrency industry due to its implications for regulatory clarity. The outcome may influence how other digital asset cases are handled by regulators.

XRP lawyer Bill Morgan has expressed Optimism about court approval of the settlement terms. Many legal observers expect the district court to rule favorably on the June 12 motion.

Next Steps in Legal Process

The parties initially reached an agreement-in-principle in April, leading to their first request for delay. The current filing represents their continued effort to finalize settlement terms outside of court.

The appeals court will now decide whether to grant the requested delay until August 15. This decision will determine whether the appeals process continues or remains paused.

The August 15 status report will provide the next update on settlement negotiations. Both parties must report their progress to the court by that date.

The district court’s decision on the June 12 motion remains the key factor in resolving the case. If approved, the settlement could end the lengthy legal battle between the SEC and Ripple Labs.