The SEC and Ripple Labs have asked the Second Circuit Court of Appeals to keep duel appeals on the ice, while they continue to convince the trial judge that an uphill battle, four and a half years of legal war should be settled by a $50 million settlement and cancel unconsent to the San-francisco-based payment companies.
Ripple and SEC drive final deals
In an eight-page status report filed late Monday, the committee told the Appeals Panel that “the parties have reached a basic agreement but are subject to approval from the committee to resolve the basic case and appeal” and therefore “respect the requirements.”[ed] The court continues to suspend appeals” until the next update expires on August 15, 2025.
The filing reviews a fast-fire sequence that began after the parties signed a settlement agreement on May 8. Under the agreement, Ripple will pay $50 million, which is 40% of the $125 million civil fine sentenced last year, while the remaining escrow funds and accrued interest will be returned to the company.
The agreement depends on U.S. District Court Judge Analisa Torres lifted her permanent ban signed on August 7, 2024 and ordered the release of the custody. The status report explains: “If the district court issues the required indicative decision,” the parties will seek limited remands so that the trial court can rewrite its judgment, and once completed, both the SEC appeal and Ripple’s cross-claim will be ” [be] Dismissal[ed]. ”
Judge Torres initially refused. On May 15, she rejected the first indicative motion because it failed to work to address the “special situation” standard of the Federal Section 60(b). The opponent returned to a 52-page memorandum on June 12, believing that continuing the lawsuit would waste judicial resources, the evacuation ban was “a necessary condition for settlement” and that the SEC’s own policy was a competitive force after acting chairman Mark T. Uyeda announced the announcement of a competitive park in January.
The committee’s new tone is very different from the posture of former chairman Gary Gensler.
The final judgment in August 2024 locked in a $125 million fine and injunction, while ordering Ripple to 111% of the fine in a escrow account with interest. The parties appealed in October 2024; the SEC’s opening summary landed on January 15, 2025, but before Ripple’s response, the parties jointly requested the Second Circuit to suspend the case under its inaugural settlement on April 10. The court approved the request on April 16.
The new motion argues that the reason for the change since then is that the court has long been considered an “abnormal” factor: a comprehensive solution to the recalibration of crypto enforcement publicly stated by the SEC, and the recalibration of any non-selective disclosures, as there is still no view of any basic summary. The memorandum cites recent voluntary dismissals of other high-profile crypto cases as “evidence from the terminal”[ing] Appeal…will be with [the] Dismissal through joint provisions. ”
Whether Judge Torres will be convinced this time is a key public question. If she expresses her willingness to dissolve the injunction and cut the fine, the limited detention of the Second Circuit will almost automatically follow afterwards. If she beat her, then the appeal (now just got a complete overview on the SEC side), would growl and rebirth.
At press time, XRP was trading at $2.247.
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