After nearly four years of intense legal battle, the U.S. Securities and Exchange Commission (SEC) has officially filed a Settlement Agreement Letter in its case against Ripple Labs. While the XRP community is celebrating this major development, legal experts warn that the case isn’t fully over yet.
According to attorney James K. Filan, even though both parties have agreed to the settlement terms, Judge Analisa Torres must first decide if the deal serves the public interest. Only after that decision will the case finally come to a close.
#XRPCommunity #SECGov v. #Ripple #XRP BREAKING: The @SECGov has filed the Settlement Agreement Letter. https://t.co/eXuWjyQECc
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) May 8, 2025
What Happens Next? The 4 Key Steps Remaining
Here’s a breakdown of the four big steps that still need to happen before Ripple can claim total victory:
- Judge Torres will review the settlement and give an initial decision on whether to dissolve the existing injunction, release the escrow funds — with $50 million going to the SEC and the rest returning to Ripple.
- If the judge agrees, both Ripple and the SEC will ask the Second Circuit Court of Appeals for a limited remand, sending the case back to Judge Torres to finalize the agreed-upon actions.
- Once the remand is granted, the two parties will file a joint motion requesting the official actions — dissolving the injunction and distributing the funds.
- After these steps are completed, Ripple and the SEC will ask the Court of Appeals to dismiss both the SEC’s appeal and Ripple’s cross-appeal, officially closing the case.
XRP Community Stands Strong
Attorney Bill Morgan pointed out that the vast majority of the public impacted by this case are XRP holders. He said that over 80,000 XRP holders joined attorney John Deaton in representing their interests during this legal fight, and there’s no record of even one XRP holder supporting the SEC’s position.
The settlement process that has happened in SEC v Ripple over the last several weeks and will continue over the next few months is apparent from the details of the rule 62.1 motion filed today asking for an indicative ruling from Judge Torres.
1. Settlement agreement signed by…
— bill morgan (@Belisarius2020) May 8, 2025
Morgan believes this overwhelming public support could help convince the judge that dissolving the injunction and settling with a $50 million fine is in the public interest.
Will the Judge Agree?
While many XRP supporters are excited, not everyone is sure about the outcome. Former SEC attorney Marc Fagel stated that Judge Torres’ earlier ruling on Ripple’s institutional sales is likely to be upheld by higher courts. He warned that if the judge rejects the settlement, it’s unclear whether the SEC would continue to defend the case on appeal.
Still, others in the XRP community feel confident that Judge Torres is likely to approve the settlement. Some point to the changing stance of U.S. regulators towards crypto, along with Ripple’s stronger legal position in appellate courts.
