In a recent social media update, attorney Bill Morgan provided insights into the settlement process between Ripple Labs and the US Securities and Exchange Commission (SEC), bringing closure to a lengthy legal battle.
Ripple And SEC Secure 60-Day Pause
Morgan detailed the timeline and procedural steps that have led to this pivotal moment noting that the settlement agreement was signed by Ripple parties on April 23, 2025, followed by the SEC’s endorsement on May 8, 2025.
After years of contentious litigation, both parties filed a motion to hold their appeals in abeyance, which was granted for a period of 60 days, extending from April 16 to June 16, 2025. This pause allowed the parties to negotiate the terms of their settlement without the pressure of ongoing appeals.
On May 8, the parties filed a Rule 62.1 motion requesting an indicative ruling, but their initial effort was met with a procedural setback. Judge Analisa Torres denied the motion due to a failure to address Federal Rule 60, which governs exceptional circumstances for modifying judgments.
Undeterred, both Ripple Labs and the regulator returned to court on June 12 with a revised joint motion focused on Rule 60, seeking clarity on the terms of their agreement.
Key Ruling Expected
As the proceedings progressed, the SEC updated the Court of Appeals, requesting that the timeline for the appeal and cross-appeal remain in abeyance until June 16, aimed to facilitate negotiations and avoid unnecessary litigation. The parties obtained an indicative ruling from Judge Torres regarding their second joint motion.
If this indicative ruling is granted, the next step would involve filing a motion with the Court of Appeals for a limited remand, allowing the trial court to address the terms agreed upon by both parties.
The culmination of this legal journey hinges on Judge Torres dissolving the permanent injunction she imposed on August 7, 2024. This ruling would permit the release of escrow funds, crucial for the settlement’s implementation.
As reported by Bitcoinist, the SEC initially resisted this trajectory, rejecting the first indicative ruling on May 15 for not adequately addressing the exceptional circumstances mandated by federal rules.
However, the parties returned with a comprehensive 52-page memorandum arguing that ongoing litigation would waste judicial resources. They emphasized that vacating the injunction was essential for the settlement and pointed to the SEC’s recent policy shift toward negotiated resolutions in the cryptocurrency sector.
The legal landscape surrounding Ripple highlights a significant moment not only for the company but also for the broader cryptocurrency market, which has considerably gained traction among US lawmakers.
Should the settlement proceed as planned, Ripple and the SEC aim to dismiss both the SEC’s appeal and Ripple’s cross-appeal, potentially paving the way for a more collaborative regulatory environment in the future
Featured image from DALL-E, chart from TradingView.com
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