Here Are Key Milestones and Next Steps in Ripple-SEC Settlement

Prominent legal expert Bill Morgan outlines the procedural milestones in the settlement process between the U.S. SEC and Ripple. 

The lawsuit between the SEC and Ripple is gradually nearing its conclusion as the parties work toward getting their settlement agreement approved. Although the settlement process started smoothly in April, it faced a significant hurdle last month after Judge Analisa Torres denied the motion.

Meanwhile, in an X post today, attorney Morgan outlined the settlement’s progress, highlighting which steps are complete, pending, or have failed. 

Ongoing Ripple v. SEC Settlement Progress 

In April, the parties jointly requested that their appeals in the Second Circuit be frozen for 60 days, potentially allowing them to resolve the case. The Second Circuit granted the request on April 16 and ordered the SEC to file a status report by June 16. 

Execution of Settlement Agreement 

According to Attorney Morgan, Ripple signed the settlement framework on April 23, 2025. However, the SEC authorized the agreement on May 8, 2025, following an internal meeting at the agency. 

For context, the settlement agreement involves reducing the fine to $50 million from the initial $125 million and dismissing the permanent injunction on the company’s future institutional sales. 

First Motion for Indicative Ruling

Afterward, the parties jointly requested an indicative ruling from Judge Analisa Torres on May 8 to dismiss the injunction and slash the fine to $50 million. 

Judge Rejects Motion 

A week later, specifically on May 15, Judge Torres denied the motion for an indicative ruling due to a procedural flaw. Moreover, the parties failed to show exceptional circumstances, as mandated by Rule 60. 

Second Motion for Indicative Ruling Refiled 

Meanwhile, Ripple and the SEC refiled the indicative ruling motion on June 12, 2025. They addressed the procedural flaw and highlighted the exceptional circumstances warranting the indicative ruling. 

SEC Updates Appellate Court on Case’s Progress 

Following the expiration of the temporary pause on June 16, the SEC updated the Second Circuit about the case’s progress. It emphasized that its second motion for an indicative ruling is pending in the district court. 

In parallel, it requested that the Second Circuit extend the temporary pause by an additional 60 days, with the deadline for a status report set for August 15, 2025. 

Pending Settlement Processes 

In the meantime, the second motion for an indicative ruling is still pending in the district court. However, some experts, including Attorney Fred Rispoli, founder of Hodl Law, believe the motion will be granted. 

Limited Remand to District Court 

If Judge Torres grants the indicative ruling, attorney Morgan suggested that the parties will file a motion in the Second Circuit, asking for a limited remand to seek relief by reducing the penalty amount to $50 million and dismissing the injunction from the district court. 

Should the Second Circuit grant the request, the case will be sent back to Judge Torres so she can authorize these requests.

Dismissal of Appeal and Cross-Appeal 

Following a potential approval from Judge Torres, Morgan suggested that the SEC and Ripple would request that the Second Circuit dismiss their appeal and cross-appeal.

These pending proceedings assume that Judge Torres grants the second motion for an indicative ruling. However, if she rejected the motion, it would affect the next procedures.