The long-running Ripple vs SEC battle might finally be wrapping up this year. With settlement talks and a critical SEC meeting this week, the stakes are higher than ever for XRP. Here’s a quick rundown of where things stand, what’s next, and why this week could be crucial for XRP.
2024 – SEC Files For an Appeal To the Second Circuit
Last year, the SEC had filed an appeal to the Second Circuit Court of Appeals, challenging a federal judge’s ruling that Ripple’s programmatic sales of XRP to retail customers did not violate securities laws, while institutional sales did.
January 15, 2025 – SEC Files Opening Brief To Overturn the 2023 Ruling
At the start of 2025, the SEC filed an opening brief on January 15th, in its appeal against Ripple, seeking to overturn the 2023 ruling that classified XRP sales differently for institutional and retail investors. The SEC claims all XRP sales should count as unregistered securities, arguing that Ripple’s marketing created profit expectations.
However, Ripple’s legal chief, Stuart Alderoty, brushed it off as old arguments which would be dropped by the next administration.
March 19, 2025 – Both the parties drop appeals
On March 19th this year, the SEC dropped its appeal against Ripple Labs regarding the legal status of the XRP token. This marked a significant regulatory shift for the crypto industry under the new administration.
Although Ripple scored a win on public sales, but it had to pay a $125 million fine as the court still held that institutional sales of XRP did violate securities laws.
May 8, 2025 – $50 Million Deal Finalised
Ripple and the SEC finally settled their long-running legal battle on May 8, 2025, agreeing to a $50 million deal. The deal was followed after months of appeals and negotiations. Ripple got a reduced penalty and the case ended on a favorable terms.
Both the parties also asked the court for an indicative ruling to lift the ban on XRP sales and to release the $125 million penalty held in escrow. Of that amount, $50 million would go to the SEC, and the rest back to Ripple.
May 15, 2025 – Judge Torres Denies Request For Indicative Ruling
But in a recent update, Judge Torres denied SEC’s request to lift the ban on XRP sales to big investors and to lower Ripple’s $125 million fine. After this, XRP’s price dropped from $2.65 on May 14 to $2.30 on May 17. Judge Torres called it “procedurally improper” and was not done in the right way.
However, Ripple’s CLO, Stuart Alderoty pointed out that nothing in the court order affects Ripple’s recent wins—like XRP not being classified as a security and the issue was purely procedural. Fred Rispoli also shared that this will get resolved, but Ripple and the SEC will need 2-3 weeks to prepare and file their motion, followed by another week or two for the judge to make a decision.
What’s Next?
Investors now await the SEC’s next move, a new settlement request that follows the court’s rules. The SEC needs to clearly show that lifting the ban on XRP sales and lowering the fine will benefit both big investors and the public.
Legal Expert Bill Morgan shared a quick timeline on on what could be next. After another three steps, the case could be fully closed.
- Right now, Ripple and the SEC are preparing to file a new motion with the correct legal steps. If the court agrees for an indicative ruling, they’ll ask the Appeals Court to send the case back to Judge Torres so she can approve the agreed relief.
- Once the Appeals Court agrees, Ripple and the SEC will officially ask Judge Torres to lift the injunction and reduce the fine as they agreed.
- After the injunction is lifted and Ripple pays the $50 million fine, both sides will ask the Appeals Court to dismiss the ongoing appeals, which will officially close the case.
This week could bring clarity to the Ripple case, with a closed SEC meeting set for Thursday, May 22. A favorable ruling could clear up things for XRP ETF as well.
