On Wednesday, April 16, 2025, the SEC vs. Ripple case took a pivotal turn as the US Court of Appeals for the Second Circuit granted a crucial joint motion to hold the appeal in abeyance, delaying further legal proceedings. This ruling was highly anticipated, as it marked the deadline for Ripple to file its appeal-related reply brief. Had the court not approved the motion, the appeal regarding the Programmatic Sales of XRP would have continued, keeping the legal battle alive.
US attorney James Filan shared the news, which was followed by widespread commentary in the crypto community, especially from pro-crypto lawyer Fred Rispoli, who remarked on the timing of the ruling:
“Man talk about cutting it close! I hope one day Ripple Chief Legal Officer Stuart Alderoty tells us the brief was drafted, finalized and ready for filing today had this not come through!”
Shifting Focus to the Final Judgment
The court’s ruling shifted the focus to Judge Analisa Torres’ Final Judgment, as Ripple continued to work on the potential settlement of the case. In March 2025, Stuart Alderoty disclosed that the SEC had agreed to drop its appeal without conditions, signaling a possible turning point in the ongoing saga. The settlement terms indicated that Ripple would drop its cross-appeal, and the SEC would retain $50M of the $125M fine already held in an interest-bearing escrow account. The rest of the fine would be returned to Ripple.
One of the most significant aspects of the potential settlement was that the SEC would ask the court to lift the standard injunction that had previously been imposed, which had significantly impacted Ripple’s ability to sell XRP to institutional investors in the US. If granted, this would likely accelerate the adoption of XRP among institutional investors, particularly in the US market.
Speculation Grows Over Settlement Impact
As speculation over the case’s resolution grew, legal experts weighed in on what the next steps might look like. Pro-crypto lawyer Bill Morgan shared his perspective:
“Now for a joint motion to Judge Torres to reduce the fine and vacate the injunction.”
Fred Rispoli echoed the sentiment, predicting:
“With this order, the next move we will see is a filing in the district court – seeking to modify Judge Torres’ order, i.e., lifting the injunction and reducing the fine.”
Legal observers believe that a potential Final Judgment settlement could signal the end of the long-standing legal battle between Ripple and the SEC, potentially opening the door for Ripple to move forward without the constraints of the injunction. This could significantly enhance XRP’s marketability and adoption, especially in the US, which has historically been a major hurdle for the cryptocurrency.
The Path to an XRP-Spot ETF
One of the most exciting possibilities arising from this case is the potential approval of an XRP-spot ETF, which could lead to a significant influx of institutional capital into the XRP market. Several financial issuers, including Bitwise, 21Shares, Grayscale, WisdomTree, and Franklin Templeton, have already filed for approval of XRP ETFs, signaling growing institutional interest in the token.
If the legal battle concludes with a favorable settlement for Ripple, it could pave the way for an XRP-spot ETF to be approved, which would likely drive institutional demand for XRP. This would be a game-changer for Ripple, as it would open up new opportunities for the token within the institutional investment space.
A Potential New Chapter for XRP and the Crypto Market
As the SEC vs. Ripple case edges closer to resolution, the market is watching closely. A settlement could mark the end of years of litigation and regulatory uncertainty, with Ripple poised to reclaim momentum in the crypto space. The XRP-spot ETF could be the catalyst that drives XRP’s growth, boosting both its price and adoption across institutional platforms.
Amicus Curiae attorney John E. Deaton, who has closely followed the case, shared his thoughts on the prospects of an XRP-spot ETF approval and its potential impact on Ripple’s future.
