Ripple vs SEC: Could the XRP Lawsuit Really Drag On Until 2026?

The legal showdown between Ripple and the SEC has become crypto's longest-running soap opera—and 2026 might be the next plot twist.

Here's why the endgame keeps slipping...

Three years in and still no finale: The SEC's lawsuit against Ripple over XRP's security status shows why regulators move at blockchain speed (that is, glacially).

Key developments that could push resolution to 2026:

- Appeals process just getting started

- New SEC leadership potentially reopening settled issues

- The legal system's inherent delays (billable hours don't count themselves)

Meanwhile, XRP holders watch their portfolios fluctuate with each court filing—proving once again that in crypto, the real yield comes from lawyers.

TLDR

• Attorney Bill Morgan stated that a delay of the XRP lawsuit until 2026 is highly unlikely.
• The SEC and Ripple recently refiled a joint motion to reduce penalties and lift the injunction.
• Judge Torres has not yet ruled on the updated motion submitted by both parties.
• A favorable ruling would allow Ripple and the SEC to end their appeals and settle the case.
• Both parties requested a pause in appeals until August 15, 2025 to pursue settlement talks.

Attorney Bill Morgan has dismissed speculation that the XRP lawsuit could stretch into late 2026. He clarified that such a scenario is unlikely unless specific legal conditions trigger further litigation. This comes as both Ripple and the SEC continue settlement negotiations amid ongoing court procedures.

Ripple and the SEC have been locked in the XRP lawsuit since December 2020 over the classification of XRP as a security. The recent speculation emerged after an online investor claimed that a final resolution could be delayed until late 2026. However, legal experts have rejected this timeline, citing current motions and judicial responses.

Although the case remains active, both parties have made significant moves to resolve the XRP lawsuit. They jointly filed a motion requesting the court’s permission to reduce penalties and vacate injunctions, which indicates ongoing efforts to finalize the legal battle without further delays.

XRP Lawsuit Could End With Approval

In June, the SEC and Ripple refiled their joint motion for an indicative ruling with added legal support. Their previous motion, filed in May, was denied due to procedural errors and lack of exceptional circumstances. The new motion addresses those issues and adds a supplemental letter from Ripple.

The motion proposes reducing the civil penalty from $125 million to $50 million and removing the permanent injunction. This action shows that both parties aim to settle the XRP lawsuit efficiently. Judge Analisa Torres has not issued a decision on the updated filing yet.

If she approves the motion, Ripple and the SEC will request a brief remand from the Second Circuit. This WOULD allow the judge to officially amend the ruling and enable the parties to end their appeals. The XRP lawsuit could then conclude without further escalation.

Appeals Paused as Parties Seek Resolution

Attorney Morgan stated the XRP lawsuit would only extend into 2026 if Judge Torres rejects the joint motion again. In such a case, the settlement process could collapse and force both parties to resume appeals. However, Morgan emphasized that continued appeals are highly unlikely.

This is not on the cards unless Judge Torres rules against the latest joint motion and rather that make the common sense decision to live with the summary judgement decision and the current penalty and permanent injunction, the settlement process breaks down completely and both… https://t.co/K6iU3OfQ4y

— bill morgan (@Belisarius2020) June 23, 2025

On June 16, Ripple and the SEC requested a temporary pause in their appeals until August 15, 2025. The request signals that both sides are prioritizing a settlement over prolonged litigation. Their actions reflect a mutual interest in ending the XRP lawsuit.

If the judge grants the motion, the appeals will likely be dismissed. Otherwise, the parties might choose to either refile or accept the current judgment. Either outcome keeps the likelihood of a 2026 delay extremely low.

Legal analysts expect a resolution ahead of the 2026 timeline due to the active cooperation between Ripple and the SEC. The XRP lawsuit continues to progress through the final stages, and settlement remains the most probable outcome.