Catenaa, Thursday, June 19, 2025- The yearslong legal battle between Ripple Labs and the US Securities and Exchange Commission remains stalled after a federal district court declined to approve a settlement deal, forcing both parties to seek further delays in the appeal process.
In a joint filing submitted June 16 to the Second Circuit Court of Appeals, the SEC and Ripple requested the case remain on hold pending district court action. The move follows the court’s May 15 rejection of a joint motion seeking an indicative ruling to clear the path for a $50 million settlement.
The initial lawsuit, filed in 2020, accused Ripple of raising $1.3 billion through unregistered sales of XRP tokens. A 2023 ruling handed Ripple a partial win, ruling XRP’s retail sales were not securities, though institutional sales were deemed in violation of federal securities law.
On May 8, the two parties reached a formal agreement under which Ripple would pay a reduced penalty of $50 million, down from $125 million. The deal also proposed lifting a prior injunction against Ripple’s operations. However, the court said the request to revise its judgment lacked “exceptional circumstances.”
Ripple and the SEC submitted a renewed motion on June 12 to meet that higher legal threshold. A ruling is still pending.
The SEC has requested a further extension in the appellate case, promising an update by August 15. The delay prolongs uncertainty for an industry still awaiting regulatory clarity from Washington.
