The XRP Lawsuit’s Strategic Silence Explained
Nearly five years after the Securities and Exchange Commission (SEC) charged Ripple Labs with conducting an unregistered securities offering, the XRP lawsuit has once again fallen silent. This period of quiet has sparked a fresh round of conjecture and speculation across social media platforms, particularly on X. However, insights from veteran securities lawyers, including Australian solicitor Bill Morgan and former SEC San Francisco Regional Director Marc Fagel, offer a straightforward procedural explanation: the Commission has not yet completed the internal vote required to abandon its own appeal.
This administrative step is the final hurdle preventing the long-running legal battle from reaching its definitive conclusion. For investors and enthusiasts, understanding this procedural pause is crucial, as it suggests that the current silence is not a sign of stagnation but rather a precursor to a potentially significant resolution that could redefine XRP’s legal status and market prospects.
Ripple’s Proactive Steps Towards Resolution
Ripple Labs has consistently demonstrated a clear intent to bring the protracted legal battle to a close. The company scored a partial victory in July 2023 when US District Judge Analisa Torres ruled that programmatic sales of XRP on exchanges did not constitute securities transactions, while institutional sales did. Despite both sides initially filing appeals in October 2024, Ripple took a decisive step by withdrawing its cross-appeal in June 2025.
Furthermore, Ripple has already placed the agreed-upon $125 million civil penalty in escrow, signalling its commitment to fulfilling its obligations and moving past the litigation. However, the SEC’s appeal technically remains alive, which means Judge Torres’s judgement is not yet final, and the injunction against Ripple remains in place. Ripple’s proactive measures highlight its desire for a swift resolution, putting pressure on the SEC to finalise its internal processes and bring the case to a definitive end. This clear intent from Ripple underscores its confidence in the asset’s future.
SEC’s Shifting Stance Under New Leadership
The SEC’s approach to cryptocurrency regulation has changed significantly since former commissioner Paul Atkins was appointed by President Trump. Atkins announced “Project Crypto,” a commission-wide rulemaking agenda, aiming to ensure the next chapter of financial innovation is written in America. This shift from a “regulation-by-enforcement” strategy to a more structured and transparent process has sparked hopes that the Commission will drop the XRP lawsuit, ending the contentious legal battle and providing clarity for the entire crypto industry. This broader regulatory détente under Atkins’s leadership is expected to bring an end to the XRP lawsuit.
The Internal Vote: The Final Hurdle for SEC Appeal
The XRP lawsuit’s current silence is due to the SEC’s internal process of abandoning its own appeal. Pro-XRP lawyer Bill Morgan questioned whether Chair Atkins can get the SEC commissioners to vote to dismiss the appeal. Marc Fagel, a former SEC San Francisco Regional Director, clarified that the case is stalled on a single mechanical step.
The prior Commission authorised dismissal in principle during failed settlement talks, but it was contingent on modifications to the proposed injunctive order. Since Judge Torres rejected the negotiated injunction, a second formal vote is necessary. Fagel emphasised that external factors like the Senate’s August recess or the CLARITY Act have no bearing on this administrative process.
Read More: XRP Price Analysis: Navigating Key Resistance at $3.10
What to Expect On or After August 15
The XRP lawsuit’s deadline of August 15 is a procedural checkpoint, but it doesn’t mean abandoning the appeal. Each party must file a joint status report with the Second Circuit, deciding if further briefing is necessary. If the SEC remains divided, it can seek another extension. However, insiders suggest there’s little appetite to prolong the fight, which the new chair has framed as regulatory overreach.
If the Commission votes to dismiss its appeal, dismissal notices would be filed immediately, lifting the injunction against Ripple, releasing the $125 million civil penalty to the US Treasury, and ending the remaining appeal that prevents XRP’s legal status from becoming binding precedent.
Impact on XRP Regulatory Clarity and Market Prospects
The potential dismissal of the SEC’s appeal during the July 31 meeting would be a monumental victory for XRP, bringing long-sought regulatory clarity. If the appeal is dropped, Judge Torres’s verdict that XRP is not a security when sold on public exchanges will finally stand as binding precedent. This legal certainty could unlock significant opportunities for XRP. It is expected to lead to renewed regulatory confidence among financial institutions, potentially paving the way for increased institutional adoption.
Furthermore, clearer regulatory status could accelerate progress on XRP spot ETF approvals, bringing the asset into mainstream investment vehicles and attracting substantial capital inflows. Market analysts and crypto commentators widely anticipate a surge in XRP’s value once this decision is formalised, with optimism already high and price targets being raised as the legal uncertainty begins to fade. This clarity is seen as a crucial step for XRP’s integration into the broader financial ecosystem.
The Future Trajectory of XRP in the US Market
The upcoming SEC closed meeting on July 31 holds immense significance for XRP’s future trajectory in the U.S. market. If the regulators formally withdraw their appeal, XRP will gain the long-sought legal clarity it needs to thrive. This outcome is expected to trigger a surge in institutional interest and potentially a significant price increase, especially given XRP’s recent retest of a bullish double bottom pattern.
This would mark a triumphant end to a protracted legal battle and establish a clearer path for XRP’s utility and adoption within the United States. Conversely, if the SEC chooses not to withdraw its appeal, uncertainty will unfortunately persist, and XRP’s future in the U.S. will continue to navigate murky regulatory waters. Such a scenario could dampen market enthusiasm and delay broader institutional integration. At press time, XRP traded at $3.02, with the market keenly awaiting the outcome of this pivotal decision that could define its next chapter.
