XRP experienced a surge in investor interest on June 24 amid developments in the ongoing SEC vs. Ripple lawsuit. Market participants await Judge Analisa Torres’ ruling on a revised joint settlement motion filed earlier this month, which could significantly influence XRP’s regulatory status and ETF prospects.
Key Developments in the SEC vs. Ripple Case
Ripple has proposed withdrawing its cross-appeal if Judge Torres removes the injunction restricting institutional XRP sales. In return, the SEC would:
- Drop its appeal,
- Reduce the penalty to $50 million,
- Clear the path for XRP’s relisting on U.S. exchanges.
This potential resolution has injected optimism into the market, though XRP remains below its May peak of $2.6553—a level last seen before Judge Torres rejected the initial motion.
👉 Why XRP’s legal clarity matters for crypto ETFs
Ripple’s Revised Motion and Legal Adjustments
On June 12, Ripple and the SEC submitted a corrected joint motion addressing procedural flaws cited in Judge Torres’ May rejection. Key updates include:
- A Supplemental Letter (filed June 17) reinforcing Ripple’s arguments,
- Clearer justification for how the settlement benefits institutional investors.
Why it matters: Approval could expedite the case’s conclusion and bolster XRP’s case for ETF eligibility.
Debunking the 2026 Delay Speculation
Pro-crypto attorney Bill Morgan dismissed rumors of a prolonged timeline, stating:
“A 2026 delay is unlikely unless the joint motion fails and both parties pursue appeals—a scenario with low probability.”
Morgan’s analysis suggests a ruling in 2025 remains feasible if the court accepts the current agreement.
How SEC’s Appeal Decision Could Shape XRP’s Future
If the SEC abandons its appeal:
- XRP’s non-security status for programmatic sales stands,
- Exchanges retain confidence to list XRP,
- Spot ETF approvals become viable.
Conversely, an appeal might:
- Reclassify XRP as a security in secondary markets,
- Trigger exchange delistings,
- Block ETF applications.
👉 The ripple effect of SEC rulings on crypto markets
Understanding the Howey Test
The SEC uses the Howey Test to determine security status. Its three criteria:
- Investment of money,
- Common enterprise,
- Profit expectation from others’ efforts.
XRP’s distinction: Judge Torres ruled programmatic sales failed prong #3, a precedent critical for its 2023 relisting.
FAQ: SEC vs. Ripple and XRP ETF Outlook
Q1: What’s at stake in the SEC vs. Ripple case?
A: XRP’s regulatory clarity, exchange listings, and ETF eligibility hinge on the outcome.
Q2: Could the SEC still appeal?
A: Yes, but withdrawing the appeal is likelier under the proposed settlement.
Q3: How does the Howey Test affect XRP?
A: Judge Torres’ prior ruling that XRP sales don’t meet all three prongs shields it from security classification.
Q4: When might a spot XRP ETF launch?
A: Post-case resolution, pending SEC approval—likely 2025–2026 if appeals are dropped.
Q5: Why did Judge Torres reject the first motion?
A: Procedural errors and insufficient investor/public benefit justification.
Q6: What’s Ripple’s $50 million penalty for?
A: Alleged unregistered institutional XRP sales (vs. the SEC’s original $2 billion demand).
Final Thought: Judge Torres’ forthcoming decision could redefine XRP’s trajectory—from legal limbo to ETF contender—setting a benchmark for crypto regulatory battles.