Ripple and SEC Seek Longer Stay of Appeals

Ripple Labs and the Securities and Exchange Commission have submitted a joint motion to the Second Circuit Court of Appeals, aiming to extend a pause on their appellate proceedings while awaiting a decision in district court. Both parties agree to maintain the hold on appeals and propose that the SEC file its next status update by 15 August 2025.

The motion, filed on 16 June, builds on a previous pause granted under Federal Rule of Civil Procedure 60, intended to allow the district court, led by Judge Analisa Torres, sufficient time to rule on an updated motion seeking an indicative ruling. The initial request was denied in May due to a lack of “exceptional circumstances,” prompting Ripple and the SEC to bolster their arguments in a new joint filing dated 12 June.

District court approval is crucial. Such a ruling would compel the Second Circuit to remand the case for settlement finalisation. Conversely, if the district court declines, the case could remain stalled until early 2026, prolonging regulatory ambiguity for XRP.

This procedural pause has broader consequences. Market sentiment remains cautious, with XRP trading troubled by sustained legal uncertainty. Amid earlier pauses, XRP dipped roughly 5% over the past month before a modest recovery, though volatility remains pronounced. Eleanor Terrett, reporting for Fox Business, noted the pause preserves ongoing ambiguity over XRP’s classification in US markets.

Within the industry, analysts describe this pause as a strategic placeholder. Ripple aims to dissolve the injunction and reduce its financial penalties, while the SEC hopes to maintain enforcement leverage. The updated motion supports this tactic by supplying additional context to substantiate an “exceptional circumstance” argument.

If Judge Torres reaches a decision before the SEC’s proposed 15 August deadline, both parties will reconvene in the Second Circuit. Should she approve the motion, the path would be clearer for finalising a settlement reportedly around a $50 million penalty, down from the original $125 million. A denial would likely defer matters to appeal, extending uncertainty.

Legal observers note that the partnership reflected in these joint motions points to shared interests in resolving the protracted case—the SEC appears willing to collaborate, and Ripple seems ready to capitulate on key issues, notably procedural compliance.

Absent the structural clarity generated by this motion, the case risks being sidelined. The 60-day pause ensures both sides step through established procedural channels, preserving appellate integrity while advancing towards resolution.