Ripple SEC Settlement Process Nears Completion With Key Filings

The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has reached a critical juncture with the initiation of the settlement process. Legal expert Bill Morgan has provided a comprehensive overview of the steps already taken, those currently in progress, and what remains to be done before the final resolution.

The settlement process began with both parties finalizing and signing a settlement agreement. Ripple signed on April 23, 2025, and the SEC followed on May 8. Prior to the SEC's signature, both sides jointly requested the U.S. Court of Appeals to pause the ongoing appeal and cross-appeal. This request was granted, halting the proceedings for 60 days, from April 16 to June 16, to allow the parties to seek relief from the district court.

Ask Aime: What will happen to Ripple after settling with the SEC?

On May 8, both parties filed a motion under Rule 62.1 with Judge Analisa Torres, seeking an indicative ruling. This step is necessary when a case is on appeal and the parties want the district court to signal its willingness to revisit the judgment. However, Judge Torres denied the motion due to a procedural oversight: the motion did not cite Rule 60(b), the correct legal basis for seeking relief from a final judgment. Bill Morgan clarified that the motion was not rejected on its merits but due to the omission of Rule 60.

On June 12, Ripple and the SEC filed a revised joint motion, this time correctly invoking Rule 60(b). The new motion again sought an indicative ruling, properly framed to allow the court to consider modifying the judgment if the appellate court remands the case. On June 16, the SEC updated the Court of Appeals on the revised filing and requested that the current abeyance period continue while Judge Torres considers the new motion.

Currently, the parties await Judge Torres’ decision on the second joint motion. If she grants the indicative ruling, it would allow the parties to request a limited remand from the Court of Appeals. This would enable them to return to her court to implement the settlement. Morgan noted that there is no disagreement between the parties now, and the remaining steps depend entirely on procedural clearance from the courts.

Should the Court of Appeals approve the remand request, the parties will reappear before Judge Torres to formally seek the agreed relief. This would involve dissolving the injunction that has long restricted Ripple’s operations and initiating the payment of the negotiated $50 million penalty. With the relief granted and settlement executed, Ripple and the SEC would then file a final joint motion with the Second Circuit to dismiss both the appeal and cross-appeal, officially closing one of the most significant enforcement cases in crypto history.

Thanks to Bill Morgan’s detailed breakdown, the XRP community has a clear view of the path forward. The next move belongs to Judge Torres, but with all key filings completed, the finish line is finally in sight.