Breaking: Ripple vs SEC Showdown Nears Climax – XRP Lawsuit Resolution Imminent

The crypto courtroom drama of the decade is finally reaching its crescendo. After years of legal wrangling, Ripple and the SEC appear poised to settle their high-stakes battle over XRP's regulatory status.

What's at stake? Only the future of one of crypto's most enduring assets—and a precedent that could reshape how regulators approach digital currencies.

Insiders whisper both sides are fatigued from the marathon litigation. The SEC's reputation took hits after several courtroom setbacks, while Ripple bled nine-figure legal fees—because nothing says 'financial revolution' like paying Wall Street lawyers more than most startups raise in Series A.

Market watchers brace for impact: A favorable outcome could send XRP soaring, while regulatory overreach might chill the entire altcoin market. Either way, crypto's favorite courtroom soap opera is about to drop its season finale.

TLDR

• Judge Analisa Torres has denied the joint motion from Ripple and the SEC in the XRP lawsuit.
• The denied motion included requests to dissolve a permanent injunction and reduce the penalty.
• Ripple and the SEC must now either proceed with their appeals or drop them entirely.
• Legal expert Fred Rispoli believes both parties are likely to settle the case with a $50 million penalty.
• Ripple’s Chief Legal Officer confirmed that the company is considering whether to continue the appeal.

A new development in the XRP lawsuit has created uncertainty about its final resolution. Judge Analisa Torres has denied a joint motion from both Ripple Labs and the U.S. Securities and Exchange Commission (SEC). The motion sought to revise a permanent injunction and reduce the penalty amount previously agreed upon.

This decision forces both parties to either MOVE forward with their appeals or withdraw them altogether. Legal experts suggest a final settlement could arrive soon, ending years of litigation. According to some legal analysts, the XRP lawsuit, which has been going on since 2020, could now be wrapped up by early August.

Attorney Fred Rispoli believes that both sides may drop their appeals in favor of a negotiated resolution. He predicted a settlement of nearly $50 million, which WOULD keep Judge Torres’s judgment intact. This approach would avoid further delays and bring an end to a prolonged legal battle.

SEC v. Ripple Update: This is a long post on my thoughts here but the TLDR is: "Welcome to the new SEC, for now more or less the same as the last one." And: Ripple and SEC will settle the appeal for the reduced, agreed upon amount and leave the Torres judgment in place, while the… https://t.co/9y9o4M4uBW

— Fred Rispoli (@freddyriz) June 26, 2025

XRP Lawsuit Shifts Back To Ripple

Ripple’s Chief Legal Officer, Stuart Alderoty, confirmed that the company is now reviewing its next steps. He acknowledged that the court’s decision places the matter back in Ripple’s control. However, the company must now decide whether to continue appealing or settle the XRP lawsuit.

Ripple has stated that Judge Torres’s decision does not change XRP’s legal classification as “not a security.” Legal observers believe this distinction remains central to Ripple’s business operations. Despite the denied motion, Ripple’s leadership has indicated their intent to comply with all relevant regulatory guidelines.

Rispoli explained that Ripple may prefer to settle rather than prolong the case further. He also noted that Ripple’s transparency and current business model align with regulatory expectations. This could signal to the SEC that continued enforcement may not be necessary.

SEC Faces Pressure to Avoid Prolonged Legal Action

The SEC also faces the decision to either pursue its appeal or settle the XRP lawsuit. Rispoli believes the agency may choose a settlement due to mounting criticism over previous enforcement conduct. He referred to past cases, such as Debt Box, where SEC lawyers faced sanctions for procedural missteps.

Some legal experts interpreted Judge Torres’s ruling as a response to the length and tone of the XRP lawsuit. Rispoli noted that judges sometimes respond to broader institutional behavior when making decisions. However, the court did not signal any direct bias against either party in this ruling.

The court’s injunction remains enforceable only if the SEC acts upon it. Yet, courts generally do not monitor ongoing compliance unless a party files a new motion. Therefore, without further action, litigation is unlikely to continue.

Case Resolution Expected by August

According to Rispoli, a timeline update shows a status report due to the 2nd Circuit in August. If both sides reach an agreement before that, the XRP lawsuit could officially close by late July or early August. Rispoli believes that if they settle, both parties will request to dismiss their respective appeals.

A final resolution would end over four years of legal conflict that impacted Ripple’s market operations. Analysts expect this decision to clarify Ripple’s future regulatory obligations and business practices.