XRP News Today: Ripple SEC Pause Appeal Deadline Awaiting Judge Torres Ruling

Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have jointly requested a pause in their appeal proceedings, extending the deadline for their ongoing legal battle over the classification of XRP. This move comes as both parties await a ruling from Judge Analisa Torres, who is presiding over the case in the Southern District of New York. The request for a pause was made as the June 16 deadline approached, with both sides seeking more time to potentially reach a settlement or resolve outstanding issues.

The joint status report filed by Ripple and the SEC indicates that both parties are engaged in discussions that could lead to a resolution of the case. The pause in the appeals process is intended to provide a window for these discussions to take place without the pressure of an impending court deadline. This is not the first time that the parties have requested a pause in the appeals process. Earlier, they had jointly requested a continuation of the appeal pause in the Second Circuit Court of Appeals until a final decision is made by Judge Torres.

The legal battle between Ripple and the SEC centers around whether XRP, the cryptocurrency developed by Ripple, should be classified as a security. The SEC has argued that XRP is a security and that Ripple's sale of XRP constitutes an unregistered securities offering. Ripple, on the other hand, has maintained that XRP is a currency and not a security, and that its sale does not fall under securities regulations.

The request for a pause in the appeals process comes as both parties await a ruling from Judge Torres on a pending motion. The motion seeks to modify the final judgment in the case and settle a $125 million penalty that was imposed on Ripple. The court has set an update date of August 15 for this motion, indicating that a decision is expected by then.

On May 8, following internal approval, the SEC and Ripple executed a settlement agreement contingent on the district court modifying the final judgment in the long-running XRP case. Under the terms, Ripple would pay $50 million to the SEC out of a $125,035,150 civil penalty, with the remainder returned to the company, and the injunction against Ripple would be dissolved. That same day, the parties jointly moved the district court for an indicative ruling on whether it would grant these modifications. The district court denied the motion on May 15, citing the failure to establish “exceptional circumstances” required under Federal Rule of Civil Procedure 60(b). The parties renewed their motion on June 12 with arguments intended to meet that legal threshold as they fight to end the case over XRP.

Ask Aime: What is the current status of the Ripple-SEC legal battle and when can we expect a ruling on the XRP classification?

The SEC’s status report explains that the renewed motion remains pending before the district court. The regulator stated that, depending on the outcome, it and Ripple would seek a limited remand from the appellate court to obtain the requested relief. If the district court grants the modifications and the final judgment is revised, both sides would move to dismiss their respective appeal and cross-appeal. Until then, both parties have agreed that the appeals should remain in abeyance. The next update to the court is due by Aug. 15, 2025.

The legal battle between Ripple and the SEC has significant implications for the cryptocurrency industry. A ruling in favor of the SEC could set a precedent for how other cryptocurrencies are regulated, while a ruling in favor of Ripple could provide clarity and certainty for the industry. The outcome of the case could also have implications for the broader financial industry, as it could impact how other digital assets are classified and regulated.

The request for a pause in the appeals process is a strategic move by both parties, as it allows them to continue negotiations without the pressure of an impending court deadline. It also provides an opportunity for the parties to potentially reach a settlement or resolve outstanding issues, which could avoid a lengthy and costly appeals process. The outcome of the case will be closely watched by the cryptocurrency industry and the broader financial community, as it could have significant implications for the regulation of digital assets.