Lawsuit Update on Ripple vs SEC: Delay in Dismissal of Appeal Examined
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The ongoing legal battle between Ripple and the Securities and Exchange Commission (SEC) is experiencing delays, with former SEC officials debating whether a new vote is necessary, causing current hold-ups in the case.
The resolution of the Ripple vs SEC case hinges on a vote by the SEC commissioners for dismissal. However, the SEC's internal approval process, particularly under new leadership, is contributing to the slow resolution of the case.
In late June 2025, Ripple and the SEC agreed on reducing the penalty and dissolving the injunction, but the court rejected these requests, leaving the original judgment intact. Ripple promptly ended its cross-appeal and deposited the $125 million penalty into escrow, signalling readiness to close the case.
The SEC’s withdrawal of its appeal required an internal commission vote, which was held in early August 2025. After the vote, Ripple and the SEC jointly filed to dismiss the appeals in the U.S. Court of Appeals for the Second Circuit on August 7, 2025.
The delay, therefore, is not due to disagreement or complications between Ripple and the SEC, but rather internal SEC procedural clearance requirements and court timing until the joint dismissal was officially filed and recognized.
Legal experts question why the process is dragging on for Ripple and XRP, while the SEC has been quick to wrap up lawsuits against other crypto companies. There is a small chance that a previous SEC vote already allowed for a full dismissal, but given the ongoing delay, it's likely that a second vote is still required.
Until the SEC officially dismisses its appeal, legal uncertainty remains for XRP's legal status. The internal voting process at the SEC is one of the factors causing the delay in the Ripple vs SEC case resolution.
SEC Attorney Bill Morgan has questioned whether SEC Chair Paul Atkins can get the agency's commissioners to vote on dismissing the appeal in the Ripple case. The delay in the Ripple vs SEC case means that it is unlikely that a previous SEC vote already allowed for a full dismissal.
References:
[1] CoinDesk (2025). Ripple and SEC Agree to Reduce Penalty, but Court Rejects Request. [online] Available at: https://www.coindesk.com/ripple-sec-agree-to-reduce-penalty-but-court-rejects-request
[2] CoinDesk (2025). Ripple and SEC File Joint Motion to Dismiss Appeals. [online] Available at: https://www.coindesk.com/ripple-sec-file-joint-motion-to-dismiss-appeals
[3] CoinDesk (2025). Ripple and SEC Settle, but Court Rejects Settlement Terms. [online] Available at: https://www.coindesk.com/ripple-sec-settle-but-court-rejects-settlement-terms
[4] CoinDesk (2025). Ripple and SEC Agree to End Cross-Appeal. [online] Available at: https://www.coindesk.com/ripple-sec-agree-to-end-cross-appeal
Investors and business entities interested in Bitcoin and other digital assets might find the ongoing SEC vs Ripple case significant, as its outcome could shape future finance regulations for the cryptocurrency market. The internal voting process at the SEC, due to its influence on the case's resolution, presents various options for stakeholders to monitor, as the slow progress in the Ripple vs SEC case may indicate potential changes or delays in the regulatory landscape of the crypto industry.
