XRP News Today: Ripple Labs and SEC Pause Appeals Awaiting Judge's Decision

Coin WorldTuesday, Jun 17, 2025 1:32 am ET
2min read

The legal dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has reached a critical juncture with the latest request. On June 16, 2025, the SEC submitted a new status report to the U.S. Court of Appeals for the Second Circuit, requesting that the court continue to hold both parties’ appeals in abeyance. The Commission confirmed it will file a follow-up report by August 15, 2025, pending Judge Analisa Torres’s decision on the parties’ revised joint settlement motion in the district court.

This procedural step allows a district court to signal its intention to reconsider or modify a judgment, even when an appeal is already underway. The current pause in appeals hinges on the court’s response to the pending motion for an indicative ruling. The parties have requested that the Second Circuit continue to hold the appeals in abeyance, with the SEC to file a status report by August 15, 2025.

Ripple and the SEC previously submitted a joint motion in May to resolve key issues relating to institutional XRP sales. That proposal was rejected shortly thereafter by Judge Torres, who stated that the request lacked sufficient justification. In response, the parties submitted a more detailed second motion on June 12, which included additional arguments intended to meet the court’s standards for reconsideration. The filing currently under review is based on that revised motion.

The June 16 deadline for filing the status report has loomed over the lawsuit for weeks now, and the SEC’s latest status report references this ongoing district court development, stating that “in light of the developments described below,” it would be appropriate for the appeals court to continue holding the case. Both the Commission and Ripple maintain that awaiting Judge Torres’s response could avoid unnecessary appellate litigation, streamline proceedings, and potentially result in a full resolution of the case.

Should Judge Torres indicate she is inclined to grant the revised motion, the appeals court may then formally remand the case to the lower court, allowing for final approval. If the motion is denied, litigation will likely resume in the Second Circuit. John Deaton, a well-respected attorney, has predicted a 70% chance that the judge will approve the motion. Until then, the SEC’s request to maintain the pause until August 15 ensures that no new appellate steps will occur while the district court weighs its next move.

On June 17, 2025, the legal battle between Ripple Labs and the SEC reached a pivotal moment. Both parties jointly requested a Manhattan court to lift the injunction in their ongoing case and release the $125 million civil penalty currently held. This development comes after a lengthy legal dispute that has spanned several years, with the SEC initially accusing Ripple of raising $1.3 billion by selling XRP as unregistered securities in December 2020.

The request to pause the case and release the funds is significant as it indicates a potential shift in the dynamics of the legal battle. The SEC's decision to drop its appeal against a favorable ruling for Ripple Labs in March 2025, which established that XRP is not a security, has provided Ripple and its token with a clear regulatory advantage over other crypto assets. This ruling by Judge Analisa Torres in 2023 has been a crucial turning point in the case, offering Ripple a more favorable regulatory environment.

The ongoing legal dispute has kept some uncertainty in the market, with enforcement actions and legal battles continuing to simmer. The SEC has been trying to classify XRP as a "security" for over four years, but the pro-crypto approach of the Trump administration has influenced the regulatory landscape. The court's expected ruling on June 16, 2025, adds to the anticipation surrounding the case, as investors and stakeholders await the outcome that could significantly impact the future of XRP.

The request to lift the injunction and release the funds suggests that both parties may be exploring a settlement or a resolution that could bring an end to the protracted legal battle. This development is closely watched by the crypto community, as the outcome could set a precedent for how other crypto assets are regulated in the future. The potential growth for XRP in 2025 is closely tied to the resolution of this lawsuit, with investors hoping for a favorable outcome that could drive the value of XRP higher.

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