Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have jointly filed a request with the Second Circuit Court of Appeals to hold the ongoing appeals in abeyance while awaiting a critical decision from the Manhattan District Court. This latest move follows a series of legal maneuvers including a previous motion to amend the final ruling in the long-standing SEC vs. Ripple lawsuit. Both parties cited "exceptional circumstances" in their latest high-stakes filing, aiming to pause appeals ahead of a key indicative ruling from District Judge Analisa Torres.
The dispute centers on the regulatory status of Ripple's XRP token, with the SEC having agreed to reduce Ripple's monetary penalty to $50 million and requesting the lifting of the injunction that prevents Ripple from selling XRP tokens to institutional investors within the U.S. The injunction was imposed in August and has contributed to XRP's legal and market uncertainty.
Judge Torres previously declined to amend the final ruling, citing procedural grounds under Federal Rule of Civil Procedure 60(b), signaling no compelling reason to alter her judgment if the case was remanded to the district court. Both Ripple and the SEC indicated they would move to dismiss the appeals if the judge agrees to modify the final judgment. The ongoing legal developments are expected to have significant implications for Ripple and its XRP token, including the possibility of ending the current legal uncertainty. The SEC plans to file another status report by August 15, 2025, updating the court on settlement progress.
Market watchers predict that the resolution of this legal battle could revive XRP from its current standstill, possibly catalyzing a price rally. XRP has underperformed recently, losing approximately 5.1% over the last month amidst a challenging macroeconomic environment. However, a slight recovery was observed recently, with XRP rising around 2.8% to trade near $2.20 at the time of reporting.