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After nearly four years of litigation, Ripple’s legal standoff with the US Securities and Exchange Commission (SEC) may soon conclude—but only if the SEC makes its next move.
While Ripple has already fulfilled its obligations, including payment of a $125 million civil penalty, the case remains technically open as the SEC has yet to formally withdraw its appeal.
The two parties are now expected to provide a joint status update by August 15, a potential turning point in one of crypto’s most significant regulatory battles.
Ripple settles penalty, withdraws appeal on institutional XRP sales
On June 27, Ripple completed two major legal actions. First, the blockchain firm officially withdrew its appeal challenging the court’s prior ruling regarding its institutional XRP sales.
Second, it paid the entire $125 million fine into escrow—demonstrating full compliance with the court’s penalty order. These actions were intended to accelerate the final closure of the case.
Despite these steps, the lawsuit remains unresolved because the SEC has not yet taken its final procedural action. The US legal process requires both parties to submit a joint stipulation to close the case.
The SEC’s internal vote and filing of its appeal withdrawal are necessary for that to happen.
Final closure hinges on SEC’s upcoming decision
As it stands, the SEC now holds the power to determine whether the case concludes or continues. Judge Analisa Torres, who presides over the matter, is unlikely to proceed without both parties submitting formal closure documentation.
This delay is reportedly due to the high-profile nature of the lawsuit, which could influence how crypto assets are regulated across the United States in future cases.
The SEC has three options: withdraw the appeal and allow the ruling to stand, request more time, or extend the delay further—potentially drawing criticism from the crypto industry and legal observers.
Analysts are closely watching the SEC’s next steps, particularly in light of its ongoing enforcement stance toward other blockchain firms.
Over 1,700 Ripple contracts may be made public
Should the SEC choose to end its appeal, a number of significant developments are expected. First, the $125 million held in escrow will be transferred to the US Treasury.
Ripple would then be free to resume its full institutional operations, which had been partially constrained during the lawsuit.
Another notable consequence could be the public release of over 1,700 confidential Ripple contracts. These documents, previously sealed during the case, may provide deeper insights into Ripple’s operations and dealings with institutional partners.
Importantly, if the SEC withdraws, Judge Torres’ existing ruling would become a lasting legal precedent—impacting future interpretations of crypto regulations under US securities law.
While August 15 is not a hard legal deadline, it remains the next major milestone that could determine whether this historic case finally comes to a close.
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