Delaying Ripple and SEC Final Decision Into Late 2026 Not on the Cards: Legal Expert

Attorney Bill Morgan dismissed recent speculation that the lawsuit between the U.S. SEC and Ripple could stretch into late 2026.

Since its inception in December 2020, the Ripple lawsuit has been the subject of numerous rumors regarding the timeline for its final resolution.

The latest speculation emerged when an altcoin investor, Bale, claimed that a final decision in the case could be delayed until the end of 2026. Despite the bold assertion, the X user failed to provide any relevant facts to support the claim, merely suggesting that August could be a decisive month in the case.

2026 Resolution is Highly Unlikely

Expectedly, XRP proponents weighed in, with many pointing out its lack of credible sources. Responding to the rumor, attorney Morgan emphasized that a resolution in late 2026 is “not on the cards,” meaning it is highly unlikely that the final decision will be delayed until the end of next year.

He suggested that such a delay would only occur if Judge Analisa Torres denies the joint motion seeking an indicative ruling to reduce the penalty from $125 million to $50 million and to vacate the permanent injunction.

Notably, the parties refiled the joint motion for an indicative ruling this month after the judge denied their initial attempt in May. Judge Torres rejected the motion due to a procedural flaw and the parties’ failure to demonstrate exceptional circumstances that warranted an indicative ruling.

In their most recent filing, the SEC and Ripple addressed these concerns. Meanwhile, Ripple even submitted a supplemental letter in support of the joint motion. However, the judge has not yet ruled on the latest request.

Why the Case Could Linger Into 2026

According to Morgan, the case will only linger until late 2026 if Judge Torres denies the joint motion, which could collapse the settlement process and prompt the parties to continue their appeals in the Second Circuit.

While this scenario is technically possible, Morgan asserted that it is highly unlikely that the parties would continue their appeals.

Currently, both parties are committed to settling the multi-year lawsuit rather than pursuing lengthy appeals.

On June 16, they jointly requested that the Second Circuit temporarily pause their appeals until August 15, 2025. This move aims to enable the parties to resolve the litigation via a settlement.

Nonetheless, Judge Torres’ indicative ruling will determine the next steps of the settlement. If she grants the indicative ruling, the parties will request a brief remand from the Second Circuit to enable her to vacate the permanent injunction and reduce the penalty to $50 million.

Under this scenario, the SEC and Ripple will ask the Second Circuit to dismiss their appeals and cross-appeals.

However, if Judge Torres denies the joint motion, the parties could either refile the request or withdraw their appeals under the current final judgment, which includes a $125 million fine and a permanent injunction against Ripple.

In either scenario, it remains highly improbable that the lawsuit will extend into late 2026, as both parties have shown a strong interest in reaching a settlement.