Key Takeaways:
- The appeal is paused, not dropped, awaiting a ruling by Judge Torres.
- A favorable ruling enables a $50M settlement and removal of XRP’s institutional sales ban.
- Judge Torres’ decision is expected by mid-August, marking a potential turning point in crypto regulation.
The long-running legal standoff between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) took a fresh turn in June 2025. Despite widespread speculation that the SEC had dropped its appeal, legal expert Bill Morgan has clarified that the appeal is merely paused—not abandoned. The outcome now hinges on one key judicial decision.
SEC Appeal in “Abeyance,” Not Dismissed
Contrary to misleading headlines on social media, the SEC has not withdrawn its appeal against Ripple. Instead, the case is in abeyance—a temporary pause—approved by the U.S. Court of Appeals for the Second Circuit. This pause remains in effect until August 15, 2025, allowing time for a potential shift in the case’s legal status.
This development follows a joint request by Ripple and the SEC, awaiting an “indicative ruling” from U.S. District Judge Analisa Torres that could enable a final settlement.
Bill Morgan Sets the Record Straight
Prominent Australian lawyer Bill Morgan, known for his detailed legal commentary on the XRP case, debunked a viral claim that the SEC had dropped its appeal. Responding to a June post by an X user, Morgan explained:
Except the Appeal is still on foot and in abeyance and performance of the settlement agreement between the SEC and Ripple which will end the appeal depends on a positive indicative ruling from Judge Torres which she may not give in order to finally end this horrible anti-retail… https://t.co/wZQqx7rns7
— bill morgan (@Belisarius2020) June 26, 2025
“The Appeal is still on and in abeyance. Performance of the settlement agreement… depends on a positive indicative ruling from Judge Torres…”
The $50 million settlement deal between Ripple and the SEC—crucially tied to lifting restrictions on XRP’s institutional sales—cannot proceed without this preliminary signal from the judge.
Procedural Misstep Delayed Progress
Originally, Ripple and the SEC jointly filed for an indicative ruling on May 8. However, their request was denied by Judge Torres due to citing the wrong procedural rule—Rule 62.1 instead of the correct Rule 60(b), which governs reopening a final judgment.
The parties corrected this error and refiled the motion on June 12, while notifying the appeals court and requesting the case remain paused.
Also Read: After $121 Million Raise, VivoPower Picks XRP as Treasury Asset Over 100+ Bitcoin Companies
All Eyes on Judge Torres
The outcome of the entire legal saga now rests with Judge Torres. If she issues a favorable indicative ruling, the case could return to her court, enabling Ripple and the SEC to finalize the deal and ask for the appeal’s dismissal.
However, if the judge declines, the paused appeal could restart—potentially dragging the high-stakes lawsuit into 2026.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
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