After four years of legal turmoil, Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have reached a pivotal moment. The SEC recently filed a Settlement Agreement Letter, marking significant progress in the prolonged legal battle. While the XRP community has greeted this development with enthusiasm, legal analysts caution that the journey is not entirely over.
Attorney James K. Filan, a key observer throughout the case, noted that despite both parties agreeing to the terms of the settlement, the final say rests with Judge Analisa Torres. Before the settlement becomes official, the judge must evaluate whether it aligns with the public interest, which remains a critical hurdle before the case can be definitively closed.
The Remaining Steps Toward Final Resolution
While the filing of the settlement marks a significant achievement, there are still crucial steps ahead before Ripple can claim a complete victory. Legal experts outline four primary stages that must unfold:
First, Judge Torres will thoroughly examine the settlement and make a preliminary determination on whether to lift the current injunction. This step includes addressing the release of escrowed funds, with $50 million designated for the SEC and the remainder returned to Ripple.
If the judge concurs with the proposed terms, both Ripple and the SEC will file a joint request with the Second Circuit Court of Appeals, seeking a limited remand. This procedural step aims to return the case to Judge Torres to implement the agreed-upon actions.
Once the remand is secured, the parties will submit a combined motion requesting the formal execution of the agreed measures, specifically, dissolving the injunction and allocating the escrowed funds.
The final phase involves requesting the Court of Appeals to dismiss both the SEC’s appeal and Ripple’s cross-appeal, thereby officially bringing the legal conflict to an end.
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
XRP Community’s United Front
The XRP community has remained resolute throughout the litigation, demonstrating steadfast support for Ripple. Attorney Bill Morgan recently emphasized that a significant portion of those affected by the outcome are XRP holders. Notably, over 80,000 XRP holders joined attorney John Deaton in presenting their collective interests during the case, underscoring widespread opposition to the SEC’s stance.
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Morgan believes that this overwhelming public backing could significantly influence the judge’s decision. He argues that approving the settlement, which includes lifting the injunction and imposing a $50 million penalty, aligns with the public interest given the community’s vocal support for Ripple’s position.
Legal Uncertainty Lingers
Despite the optimism from Ripple supporters, not everyone is convinced the outcome is secure. Marc Fagel, a former SEC attorney, pointed out that Judge Torres’ prior decision regarding Ripple’s institutional XRP sales is likely to be upheld by appellate courts. Should the judge reject the settlement, it remains uncertain whether the SEC would continue to defend its position on appeal.
Nonetheless, some community members believe the evolving regulatory environment in the United States, combined with Ripple’s strengthened stance at the appellate level, increases the likelihood of a favorable resolution. The general sentiment leans toward Judge Torres approving the settlement, especially given the substantial community support and the shifting landscape of crypto regulation.
A Landmark Moment with Uncertain Outcomes
While the settlement agreement represents a landmark moment in the Ripple vs. SEC saga, its full resolution hinges on judicial approval. As the community awaits Judge Torres’ decision, the crypto world remains attentive, weighing the potential impact of either outcome on Ripple, XRP, and the broader industry. Should the settlement gain approval, it could mark the end of a contentious chapter, offering Ripple a chance to fully refocus on its core business operations.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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