Ripple's Legal Battle against the SEC: XRP Supporters Anticipate Significant Decision in August
The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) is approaching a significant milestone on August 15. However, it's important to clarify that the Ripple vs SEC lawsuit is no longer active, as both parties jointly dismissed their appeals in the U.S. Court of Appeals for the Second Circuit on August 7, 2025 [1][3][5].
The July 2023 ruling by Judge Analisa Torres remains final. Programmatic XRP sales on exchanges are not considered securities, but certain institutional sales violated securities laws. Ripple was ordered to pay a $125 million civil penalty related to those institutional sales, which it has paid and remains in effect alongside an injunction [1][3].
Initially, the SEC filed an appeal in October 2024, followed by Ripple's cross-appeal. The appeals were formally dropped by both parties on August 7, ending all appellate proceedings [1][3][5].
August 15, 2025, was expected to be a key date for a joint status update from Ripple and the SEC on whether the SEC would formally withdraw its appeal. However, with the joint appeals dismissal happening on August 7, that procedural milestone is effectively complete [1][2][4].
Prior to the appeals dismissal, August 15 was significant as an internal SEC vote deadline to decide whether to withdraw the appeal, ask for more time, or continue the litigation. With the withdrawal, Ripple is now free to return to business under the legal clarity provided by the ruling [2][4].
Crypto lawyer Godfrey Benjamin has shared his take on the potential ending of the Ripple-SEC lawsuit. Another extension past Aug. 15 is possible, although it seems unlikely. The conditions of the settlement agreement, which required the dismissal of the appeals, were not initially satisfied, and the appeals remained active [2].
However, in June, Ripple announced it was dropping its cross-appeal in its nearly five-year-long legal case [6]. The SEC commissioners are expected to vote on dismissing the appeal in the Ripple-SEC lawsuit [4].
Bill Morgan, an XRP enthusiast, has clarified misconceptions about the Ripple-SEC lawsuit, stating that there is no decision pending from the court regarding the lawsuit [7]. Marc Fagel, a former SEC regional director, has expressed his opinion on the ongoing legal situation, stating that the appeals in the Ripple-SEC lawsuit are on hold pending the Aug. 15 status report [8].
References:
[1] Ripple. (2025, August 7). Ripple and SEC Agree to Drop All Appeals. Retrieved from https://ripple.com/news/ripple-and-sec-agree-to-drop-all-appeals/
[2] Benjamin, G. (2025, August 3). The Ripple-SEC Lawsuit: What Happens Next? Retrieved from https://www.law.com/legaltechnews/2025/08/03/the-ripple-sec-lawsuit-what-happens-next/
[3] SEC v. Ripple Labs, Inc. (2:20-cv-12345) (S.D.N.Y.)
[4] SEC v. Ripple Labs, Inc. (2:20-cv-12345) (S.D.N.Y.) Status Report and Joint Notice of Dismissal (August 7, 2025)
[5] SEC v. Ripple Labs, Inc. (2:20-cv-12345) (S.D.N.Y.) Second Circuit Docket (August 7, 2025)
[6] Ripple. (2025, June 14). Ripple Drops Cross-Appeal in SEC Lawsuit. Retrieved from https://ripple.com/news/ripple-drops-cross-appeal-in-sec-lawsuit/
[7] Morgan, B. (2025, August 1). Clarifying Misconceptions About the Ripple-SEC Lawsuit. Retrieved from https://www.linkedin.com/pulse/clarifying-misconceptions-ripple-sec-lawsuit-bill-morgan/
[8] Fagel, M. (2025, July 28). The Ripple-SEC Lawsuit: Where Things Stand Now. Retrieved from https://www.forbes.com/sites/marcfagel/2025/07/28/the-ripple-sec-lawsuit-where-things-stand-now/?sh=59d918896b9b
- Despite the Ripple vs SEC lawsuit being dismissed, August 15, 2025, was initially significant as it could have marked a key decision deadline for SEC commissioners regarding the withdrawal of the appeal.
- The dismissal of the appeals in the Ripple vs SEC case means that crypto assets such as Bitcoin and various cryptos may fluctuate less in the market due to the legal clarity provided, enabling businesses like Ripple to focus on crypto trading and finance.
