XRP News Today: Ripple SEC Case: No XRP Reclassification, $50 Million Settlement Stands

Ripple’s ongoing legal dispute with the US Securities and Exchange Commission (SEC) continues to draw significant attention, but recent rumors about a potential reclassification of XRP have been refuted by legal experts. Contrary to widespread social media speculation, Judge Analisa Torres is not preparing to redefine the legal status of cryptocurrencies in the United States. Instead, both Ripple and the SEC are seeking an “indicative ruling” from the court. This ruling would allow the court to consider special circumstances that could lead to a reduction in Ripple’s penalty and the modification of the ban on XRP sales to institutional investors, according to legal expert Bill Morgan.

This indicative ruling, if granted, would not alter the July 2023 summary judgment that declared XRP is not a security in secondary market transactions. Morgan clarified that the court’s ongoing deliberations are focused on Ripple’s request for a reduced penalty and the lifting of certain restrictions on XRP’s institutional sales, rather than a reassessment of XRP’s status itself. Both parties have confirmed their intention to leave the original July 2023 summary judgment untouched.

Amid these court developments, there has been renewed speculation about a $50 million settlement between Ripple and the SEC. However, this figure is from a previous settlement agreement finalized in April 2025 and approved by the SEC in early May. That settlement reduced Ripple’s proposed penalty from an earlier $125 million to $50 million, with both parties agreeing to the revised terms after months of negotiations. There has been no new settlement offer since then, despite ongoing community speculation online.

With both Ripple and the SEC having jointly asked the court to keep the appeals process on hold, the next major update in the case is expected from the SEC. The SEC is due to file a status report by 15 August 2025, which may provide additional clarity on the progression of the case and the court’s response to the indicative ruling request. XRP holders and the wider crypto market are closely watching the case, especially as regulatory scrutiny of digital assets intensifies both in the US and abroad. The resolution of Ripple’s legal challenges could set important procedural precedents, particularly concerning penalties and institutional sales of crypto assets following a regulatory breach.