Ripple v. SEC Stalls Again as Appeal Put on Hold — Here’s What’s Holding It Up

The long-running courtroom saga between Ripple and the US Securities and Exchange Commission has hit another pause, as both parties asked the Second Circuit Court of Appeals to keep the case on hold.

In a joint status report filed on June 16, the SEC confirmed that a settlement has been signed but still hinges on the district court’s approval to move forward.

This is the latest twist in a case that has shaped the way digital assets are viewed under US law. Since 2020, when the SEC sued Ripple for allegedly raising $1.3b through unregistered sales of XRP, the dispute has pulled in investors, crypto platforms and policy watchers from around the world.

What Began As A Billion-Dollar Dispute Edged Toward Resolution With A Scaled-Down Penalty

A partial ruling in 2023 gave Ripple a win on XRP’s classification in retail sales, but the company was found liable for securities violations in its institutional sales. Both sides appealed.

Then in May, a breakthrough seemed close. The SEC and Ripple reached an agreement in principle to resolve the litigation entirely. According to the June filing, they signed a formal settlement on May 8.

Under the deal, Ripple would pay $50m to the SEC, while the remaining $75m from a previously imposed civil penalty would be returned to the company. The agreement also called for dissolving the injunction placed on Ripple.

Legal Gridlock Deepens As District Court Holds Back Settlement Approval

Still, the path to closure has been far from smooth. The settlement depends on the district court agreeing to revise its earlier judgment. To move forward, both sides filed a motion seeking what is known as an indicative ruling. In essence, they asked the court to signal whether it would consider approving the proposed changes.

However, the court rejected that request on May 15. It ruled that the motion failed to show the “exceptional circumstances” needed for such a modification.

On June 12, Ripple and the SEC returned to court with a renewed motion. This time, they aimed to meet the “exceptional circumstances” standard set by the judge. So far, the court has not ruled on the new request. As a result, both the settlement and the appeals remain in limbo.

In the meantime, the SEC has asked for more time. It requested that the appeals court continue to pause the case and committed to providing another update by Aug. 15. The delay adds to growing uncertainty, as crypto firms and regulators watch closely for guidance on how securities laws will apply to digital assets.

With billions in crypto still operating in a regulatory grey zone, the Ripple case has become a bellwether. What happens next could set the tone for how token sales, crypto company operations and regulatory oversight unfold in the US. For now, the waiting game continues.