The U.S. Securities and Exchange Commission (SEC) faces a crucial deadline in its long-running lawsuit against Ripple. Legal expert Bill Morgan highlighted that the SEC must report to the appeals court by August 15, 2025, which effectively acts as a deadline for the agency to take a meaningful step — though it could simply request an extension. “We will hear something about the matter in the next two weeks,” Morgan wrote on X, noting that the SEC has not yet withdrawn its appeal in the Ripple matter.
Case Background and Rejected Settlement
The SEC sued Ripple in December 2020, alleging that the company’s sales of XRP constituted unregistered securities offerings. In a landmark ruling in July 2023, Judge Analisa Torres determined that institutional sales of XRP were securities transactions, but programmatic sales on exchanges were not. Following this, the SEC and Ripple reached a settlement agreement, but Judge Torres rejected the proposal, citing inadequate penalty reductions and the need to maintain an injunction.
XRP Momentum Grows Despite Legal Uncertainty
Despite ongoing legal limbo, XRP has seen a surge in institutional interest. The partial regulatory clarity from the court ruling has encouraged companies to view XRP as a more viable asset for cross-border payments and treasury reserves. Its role as a fast, low-cost bridge currency continues to attract financial institutions. Meanwhile, speculation about a potential spot XRP exchange-traded fund (ETF) is intensifying, with several asset managers exploring such products. Some corporations have already begun adding XRP to their corporate treasuries, further validating its utility.
The next two weeks will be critical: if the SEC takes no action by August 15, it may signal a willingness to drop the appeal, potentially clearing the path for XRP’s broader adoption. If the agency asks for more time, the legal saga will drag on. Either way, the crypto community is watching closely.