Ripple vs. SEC Case in Limbo as Judge Steps Out

The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has reached a critical juncture as of July 6, 2025. Judge Analisa Torres has officially stepped out of the case, leaving the future of the lawsuit hanging in the balance. The next steps depend entirely on the actions of both Ripple and the SEC. Neither party has formally dismissed their appeal, which means the case remains in a state of legal limbo.

According to former SEC lawyer Marc Fagel, Judge Torres' previous ruling against Ripple will automatically go into effect once both parties formally dismiss their appeals. Fagel clarified that the district court’s ruling is already implemented and will be declared upon the dismissal of the appeals. He also noted that Judge Torres does not need to add her signature to any documents for this process to proceed.

Ripple CEO Brad Garlinghouse had previously announced the company's intention to withdraw its appeal. However, Fagel observed that neither Ripple nor the SEC has filed any court notice of dismissal despite the government’s declaration. The legal outcome remains in abeyance until the necessary procedural filings are completed. Fagel emphasized that the appeal process is not yet officially concluded and that no legal implications will be conferred until both parties file the requisite documents. This step, while probable, has not yet taken place and may require additional time due to the SEC's internal review mechanisms.

Speculation arose regarding a closed-door SEC meeting held on July 3, with some suggesting it could be related to a settlement in the Ripple case. Fagel clarified that such meetings are typically planned and not necessarily tied to immediate legal resolutions. He pointed out that even if a decision were made internally, it would still take weeks before any such filing could be noted in the court docket. Fagel also noted that the case appears to be heading towards the dismissal of appeals, but there are no current records of any official actions being taken. Once the filings are listed, the case will revert to Judge Torres' initial ruling against Ripple, marking the end of her involvement.

The XRP community has been eagerly awaiting any indication of a settlement or a fast-tracked decision. However, Fagel's revelations suggest that the delay is merely procedural. The final outcome is tied to actual court proceedings and SEC internal procedures, which may not be expedited. As of July 6, 2025, the Ripple vs. SEC lawsuit remains in a transitional stage. Judge Torres' involvement is complete, but the legal resolution hinges on the appeal dismissals being officially filed. While a settlement appears imminent, procedural steps must still be followed before the case can be fully resolved.