Will the SEC and Ripple Ever Settle? You Won’t Believe What Happens Next! 😲

In a most curious turn of events, the esteemed U.S. Securities and Exchange Commission, alongside the illustrious Ripple Labs, have beseeched the venerable U.S. Court of Appeals for the Second Circuit to graciously extend the pause on their ongoing appeal. One might wonder if they are merely enjoying a leisurely afternoon tea while the legalities unfold! ☕️

As per the latest missive from the ever-diligent defense attorney, Mr. James K. Filan, dated June 17, this request arises amidst a pending motion for an indicative ruling from the district court, which, if granted, could lead to a most agreeable settlement and a modification of the final judgment. How delightful! 🎉

#XRPCommunity #SECGov v. #Ripple #XRP In light of the pending motion for an indicative ruling, the parties have requested that the Second Circuit continue to hold the appeals in abeyance, with the @SECGov to file a status report by August 15, 2025.

— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) June 17, 2025

In a rather amusing filing shared by Mr. Filan on June 16, the SEC proclaimed that both parties had reached a final agreement in principle. They now await an “indicative ruling” from the district court, which, if bestowed upon them, would permit the court to dissolve the injunction against Ripple and modify the rather hefty $125 million penalty imposed last year. One can only imagine the sighs of relief! 😅

This motion follows an earlier order from April, when the appeals court, in a moment of benevolence, agreed to temporarily pause proceedings after the parties disclosed the possibility of a settlement. The SEC is now poised to submit a new status report by August 15, as if they were preparing for a grand ball! 💃

According to the aforementioned filing, the proposed settlement includes the removal of the injunction against Ripple and a rather clever adjustment to how the civil penalty is managed. The penalty, currently held in escrow, would be divided, with $50 million going to the SEC and the remainder returned to Ripple. Both parties have graciously agreed to file a joint motion to request these changes, should the court offer a favorable indication. How very cooperative of them! 🤝

This latest endeavor towards resolution follows years of litigation, harking back to 2020, when the SEC, in a fit of regulatory fervor, sued Ripple for allegedly offering unregistered securities. In July 2023, a federal judge ruled that Ripple’s programmatic sales did not violate securities laws, though charges related to institutional sales were upheld. The penalty, of course, was placed in escrow during the appeals process, as one would expect in such a dramatic tale.

Alas, an attempt to settle the case in May 2025 was thwarted when the court declared that “exceptional circumstances” were not met. However, with the SEC now under new leadership and a refreshing shift in its crypto enforcement strategy, the parties swiftly reached a revised deal. How fortuitous! 🍀

The resolution of this case could indeed have broader implications, including the potential approval of a spot XRP (XRP) exchange-traded fund. Several applications from firms such as Grayscale and ProShares are pending, with deadlines looming ominously from June. The suspense is palpable! 😬

Market odds on Polymarket recently dipped to 88% after peaking at 98% in early June. Meanwhile, Bloomberg analysts, ever the optimists, still estimate an 85% chance of approval this year. One can only hope that the winds of fortune blow favorably upon them! 🌬️

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2025-06-17 12:13