The legal battle between Ripple and the SEC seems to be approaching its conclusion, but obstacles remain. While Ripple retracted its cross-appeal in June and paid a $125 million penalty, the SEC has yet to follow suit.
This prolonged case has captured the attention of the XRP community. Recently, pro-XRP lawyer Bill Morgan highlighted that although the SEC is not bound by a strict deadline to withdraw, a significant date is rapidly approaching.
No Fixed Deadline, Yet Time Is Running Out
According to pro-XRP attorney Bill Morgan, August 15, 2025, marks a procedural milestone for Ripple and the SEC. They are expected to file a joint status report to the appellate court by this date, effectively making it a pivotal moment for the SEC’s next move.
Although the SEC is not legally compelled to drop its appeal by this date, it serves as a prompt for action or at least a formal update. Morgan noted, “The SEC needs to report to the appeal court by August 15, 2025, which serves as a deadline… although they may simply request more time.”
This delay has left the XRP community in suspense since October 2024, when the SEC announced its intention to appeal Judge Torres’s decision. The general expectation is that the SEC will follow Ripple’s example and withdraw its appeal.
Potential Outcomes If the SEC Withdraws or Continues
As the SEC remains silent, uncertainty continues to overshadow the situation, despite growing agreement that Judge Torres’s July 2023 ruling—deeming XRP not a security for retail secondary market trades—should be finalized. The appeal has effectively extended the case for an additional two years.
If the SEC decides to withdraw its appeal soon, this action will solidify the May 2023 ruling as final, concluding the years-long legal dispute and enabling several anticipated market developments.
According to crypto analyst Vincent Van Code, more than 1,700 companies linked to Ripple through NDAs could finally disclose partnerships and initiatives on the XRP Ledger. Additionally, legal clarity could pave the way for institutional-grade products like Spot XRP ETFs awaiting approval, potentially leading to a significant rise in XRP’s price.
However, if the SEC seeks more time around August 15, this could further delay XRP’s next growth phase and leave its regulatory status unresolved. While such a move wouldn’t negate Ripple’s legal victories, it would prolong the uncertainty that is deterring investor confidence.
