Ripple Case Pressure Mounts as SEC Faces August Deadline

The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) is dragging on, with no final decision in sight. Even after Ripple backed out of its appeal, the SEC hasn’t done the same, leaving the case hanging and the crypto world waiting.

Good to know

• A federal judge has already blocked the earlier settlement proposal between Ripple and the SEC.
• The SEC must provide an update to the appeals court by August 15, 2025—though they could just ask for more time.
• XRP has picked up momentum recently, even as legal uncertainty continues.

The fight started back in December 2020 when the SEC sued Ripple over allegations that XRP sales were unregistered securities. That legal question shook up the industry, raising concerns about what exactly counts as a security in the crypto space.

In 2023, a partial answer came. Judge Analisa Torres ruled that while Ripple’s institutional XRP sales were considered securities, its public token sales on exchanges weren’t. The decision gave XRP some regulatory breathing room and sparked renewed interest, especially among institutional players.

Later, both sides tried to settle—with Ripple aiming to cut the penalty and dissolve an injunction—but Judge Torres rejected that deal too, which threw the case right back into limbo.

Legal analyst Bill Morgan chimed in last week via X, saying, “The SEC has not withdrawn the appeal in the Ripple matter yet.” He pointed out that although there’s no set deadline to drop the appeal, the SEC does need to make a move by August 15, either by filing something or requesting an extension. So far, they’ve done neither.

Meanwhile, XRP isn’t just sitting idle. Even with the case unresolved, its utility as a cross-border bridge currency is gaining attention again. Financial institutions and treasuries are using XRP for fast, low-fee international transfers, and there’s talk of a possible spot XRP ETF in the works. Some companies have even started adding XRP to their balance sheets, seeing it as a strategic asset thanks to the partial legal clarity.

As for how this all wraps up? That depends on what the SEC decides to do next—and whether the court accepts it. The next two weeks will likely bring more clarity, or at the very least, more legal maneuvering.