The months-long court fight between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs is nearing another crucial juncture, with a key development due by mid-August. The SEC has an August 15, 2025 deadline to report back to the appellate court a development that might finally provide an end to an open-ended lawsuit that has left the XRP token in limbo for years.
The December 2020 suit was over whether or not Ripple’s sales of XRP constitute unregistered securities transactions. In a 2023 milestone ruling, U.S. District Judge Analisa Torres held that institutional sales of XRP did constitute securities but programmatic sales on exchanges did not.Â
This limited win for Ripple was considered a milestone moment for crypto regulation, leading to more broad-based institutional interest in XRP.
While Ripple has dropped its appeal in the case, the SEC has not. Legal commentator Bill Morgan recently tweeted that while there’s no hard and fast requirement for the SEC to drop its appeal, it is required to bring the appellate court up to date by August 15.
Whether this leads to action or merely another plea for delay remains to be seen but crypto watchers are anticipating action in the next few weeks.
Judge Torres recently denied a suggested settlement between the SEC and Ripple, which would see fines cut back and certain injunctions terminated.
That decision has added to the uncertainty, though XRP enthusiasts are optimistic in the wake of recent institutional and market developments.
Regardless of all the legal back-and-forth, XRP continues to climb. Its speed and low transaction fees have made it appealing for cross-border transactions and banks.
The growing likelihood of an XRP spot ETF has also contributed to the optimism, with some companies having reportedly started holding XRP as part of their treasury reserves.
While regulatory stress mounts, so does mainstream interest in XRP. The end result of this judicial drama may influence not only the fate of Ripple itself, but the overall landscape of crypto regulation within the U.S.
Also Read: Ripple SEC Case Update: Judge Torres Signs Memo Endorsement, XRP Price to $15?
