Ripple’s $125M Crypto Clash With SEC Paused Again — Massive XRP Shake-Up by August 15?
Key Takeaways:
- The Ripple vs. SEC legal case remains in limbo as both parties request more time to finalize a potential settlement.
- The SEC and Ripple have jointly renewed their motion to modify a $125 million penalty, proposing a reduced $50 million payout.
- A pivotal district court decision is still pending, with the next update due August 15, 2025, potentially reshaping the fate of XRP.
After nearly five years of legal wrangling, the Ripple-SEC battle enters yet another holding pattern. With a potential multi-million-dollar settlement in the works, both parties have asked the court to pause appeals and wait for a key ruling that could finally close one of the most high-profile crypto cases in U.S. history.
Read More: Ripple and SEC Push to Unlock $125M in Escrow—But Only One Side Gets Paid
SEC vs. Ripple: What’s on the Table?
On June 12, 2025, the U.S. Securities and Exchange Commission (SEC) and Ripple Labs Inc. renewed their joint motion requesting an indicative ruling from the Southern District Court of New York. The motion outlines what they argue are “exceptional circumstances” warranting a modification to the final judgment previously issued in the case.
That judgment originally imposed a $125 million civil penalty on Ripple for alleged unregistered securities offerings of XRP. However, under a revised agreement reached in principle earlier this year, the parties now propose:
- Dissolving the original injunction against Ripple.
- Reducing the financial penalty from $125 million to $50 million, paid to the SEC.
- Returning the remaining $75 million in escrow funds back to Ripple.
The District Court’s First Rejection
Back in May 2025, the same court denied an earlier version of this request. The reason? The motion failed to explain why such a significant change should be allowed under Rule 60(b) of the Federal Rules of Civil Procedure, which requires proof of “exceptional circumstances” for altering a final judgment.
That denial temporarily halted the momentum for what seemed like a clear path toward settlement. But the parties didn’t stop there.
Read More: SEC’s 12-Day Countdown: Will Ripple’s Fate Be Sealed or Stretched Into 2026?
Appeals on Hold — Again
With the revised motion still pending review, Ripple and the SEC jointly filed a status report with the Second Circuit Court of Appeals on June 16, 2025. The report requests that the court continue to hold the appeals in abeyance, meaning the appeals process remains paused.
This pause was first approved in April 2025 after both sides notified the court that they had reached a tentative agreement, subject to approval from the SEC and district court. On May 8, after the Commission formally approved the terms, both parties executed a binding settlement agreement, contingent upon district court acceptance.
What’s Next?
Ripple and the SEC did agree to a due date for the next status report (August 15, 2025), solely depending on the district court’s ruling on their motion. Assuming the court agrees and grants the requested indicative ruling, the parties are likely to file a motion for a limited remand asking the district court to permit them to return for the express purpose of asking for the modification.
If that change is approved:
- The SEC will receive its reduced fine.
- The rest of the penalties will be recovered by Ripple.
- The two sides will drop their appeals, basically putting the legal fight to rest.
XRP Price Reacts to Legal Uncertainty
Although at this point it is largely procedural, the case continues to have price impact on XRP. Following the June 16 update:
- XRP experienced a quick 7% spike reaching $2.34 as rumour has it that the long standing case could be coming to an end.
- But the rebound was short-lived, and the XRP price slid to $2.23 as traders hesitated and the court decision neared.
These are signs how volatile market could be and how to serious the impact of regulatory actions on crypto values is. The price of XRP has been closely following each significant legal development since the SEC filed its lawsuit in December 2020.
Ripple Case Timeline — Key Dates & Filings
October 2, 2024
The SEC filed a notice of appeal of the final judgment entered by the district court.
October 10, 2024
Ripple filed a cross-appeal, countering the SEC’s position.
January 15, 2025
The SEC filed its opening brief in the appeal.
April 10, 2025
Both parties had sought to stay the appeals process in the light of their settlement agreement in principle.
May 8, 2025
Ripple and the SEC reached an official settlement, with a change in the judgment.
May 15, 2025
The district court rejected the first request for modification.
June 12, 2025
Ripple and the SEC submitted a joint file for the renewed motion, outlining the “extraordinary circumstances” that comply with Rule 60(b).
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