The U.S. Securities and Exchange Commission (SEC) must report to the appellate court by August 15, 2025, regarding the appeal, while XRP gains institutional acceptance.
The nearly five-year legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple is entering a critical phase. While Ripple has withdrawn its appeal, the SEC has not taken similar action, creating ongoing uncertainty for the cryptocurrency market. Federal Judge Analisa Torres rejected the settlement agreement between the parties, leading to further delays and extending the final resolution process.
Legal expert Bill Morgan provided important information about this process on platform X last week, stating that the SEC must report to the appellate court by August 15, 2025. Although there is no mandatory deadline for the SEC to withdraw its appeal, this date serves as a deadline for the agency to take specific action, even if it is just to request an extension.
The lawsuit initiated in December 2020 revolves around the question of whether Ripple's sale of XRP constitutes the unregistered offering of securities. The important ruling by Judge Torres in 2023 created a clear distinction: XRP transactions for institutional investors are considered securities, but XRP transactions that are programmatic through exchanges do not fall under the definition of securities.
Growth momentum despite legal uncertainties
Despite the complex legal developments, XRP has recorded an increasing level of acceptance from institutions. The legal clarity partly from the court's ruling has motivated institutional investors, helping XRP to be seen as a more legitimate asset within the cryptocurrency ecosystem.
XRP's role as a highly effective bridge currency for cross-border transactions continues to attract interest from corporate treasury departments and financial institutions. With fast transaction speeds and low costs, XRP is increasingly being used in international payment applications.
Expectations for a spot XRP ETF are also rising, opening up a new channel for capital inflow from the traditional financial market. Some companies have begun adding XRP to their treasury assets, reflecting growing confidence in the long-term prospects of this digital asset.
After the SEC and Ripple reached an agreement to reduce the penalty and lift the injunction, Judge Torres's rejection of this agreement added another layer of complexity to the lawsuit. However, the cryptocurrency community still hopes that the deadline of August 15 will bring final clarity to this legal battle, thereby allowing XRP to develop more robustly in the future.
