A former SEC official revealed that Ripple was the main cause of the lengthy appeal process this year, not the committee.
Now, both parties are trying to end the lawsuit, bringing a final resolution closer.
Ripple vs. SEC Legal Battle
The Ripple vs. SEC case was a milestone in crypto enforcement actions and was supposed to end in March. However, continued cross-appeals and settlement attempts remained in the news for months.
Mark Fagel, a former SEC regional director and long-time securities litigation attorney, explained on X (formerly Twitter) about increasing speculation that Ripple failed in its attempt to renegotiate the court's relief measures.
The company tried to withdraw the order and reduce the $125 million fine. However, the judge immediately rejected these conditions.
"The parties were trying to settle the case by withdrawing the order and reducing the fine on the condition of dismissing the original appeal," Fagel wrote. "The court rejected this. So they had to restart the process."
Essentially, the SEC under Gary Gensler prohibited Ripple from selling securities to non-institutional investors. Now, with the committee under new leadership, the company tried to remove this prohibition.
This process led to months of continuous litigation and court appearances, concluding at the end of June.
In retrospect, some circumstantial evidence supports these claims. For example, two weeks before finalizing cross-appeals, Ripple and the SEC submitted a joint request to continue court proceedings.
Legal observers at the time noted that the submission was lukewarm and did not address the judge's primary concerns. This could indicate diminishing investment in the battle.
Gensler Era Injunction
This year's key issue stemmed from the Gensler-era order. Ripple was prohibited from selling XRP institutionally without SEC registration. Ripple hoped to remove this order after the committee would have new leadership under Paul Atkins following the 2024 US election.
However, the legal system does not move as quickly as political sentiments. Fagel emphasized that the delays in 2023 and early 2024 were routine in complex federal lawsuits and not part of an intentional SEC delay tactic.
There was a (very small) chance the original approval vote encompassed dismissal even without the modification of the injunctive order. Given the delay, seems pretty clear that was not the case, so we're presumably still waiting on another vote.
โ Marc Fagel (@Marc_Fagel) August 4, 2025
Final Conclusion Expected August 15
The final stage of the case is procedural. Both sides must submit formal documents to withdraw appeals. The SEC's response or proceeding deadline is August 15, 2025.
Once completed, the $125 million fine currently held in escrow will be transferred to the US Treasury.
"They will not be found 'not guilty'. It is established law that they illegally raised hundreds of millions of dollars through unregistered securities sales," Fagel mentioned.
Nevertheless, this part of the case clearly ended in a defeat for Ripple. Fagel was emphatic that the SEC would not forgive Ripple's past securities violations.
Legally, the court has already ruled that Ripple's institutional sales violated securities law, and this ruling remains binding.
