The XRP market experienced a resurgence in investor interest on June 24, driven by developments in the long-standing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). Traders closely monitored the court’s response to a revised joint settlement motion filed earlier in June, sparking renewed optimism about regulatory clarity and the potential for an XRP spot ETF.
At the heart of the momentum is a strategic agreement between Ripple and the SEC: Ripple has agreed to drop its cross-appeal if Judge Analisa Torres lifts the injunction preventing institutional sales of XRP. In return, the SEC would withdraw its own appeal and reduce the proposed penalty to $50 million—a significant shift from earlier demands.
This legal recalibration has been met with positive market sentiment, even as broader digital assets recover from geopolitical volatility. While XRP has yet to reclaim its May peak of $2.6553—reached just before the initial motion was rejected—the latest developments have reignited bullish sentiment.
👉 Discover how regulatory clarity is reshaping digital asset markets today.
Ripple’s Second Motion and the Path to Settlement
On June 12, Ripple and the SEC submitted a second joint request for an indicative ruling from Judge Torres. This renewed motion aimed to correct procedural shortcomings that led to the rejection of their first filing in May.
The original motion failed due to insufficient justification regarding how the proposed settlement would benefit institutional investors and serve the public interest—key concerns raised by the court. To address these gaps, Ripple filed a Supplemental Letter on June 17, reinforcing its legal arguments and emphasizing the mutual benefits of resolving the dispute efficiently.
The revised motion reflects a coordinated effort to align with judicial expectations while streamlining the path toward final resolution. Although no timeline has been confirmed, legal analysts interpret this as a strong signal that both parties are committed to closing the case without prolonged litigation.
Market participants view this procedural refinement as more than just a legal formality—it represents a tangible step toward long-awaited regulatory certainty for XRP.
Legal Expert Dismisses 2026 Delay Speculation
Rumors suggesting a final decision might not come until late 2026 have circulated widely across crypto communities. However, prominent pro-crypto attorney Bill Morgan has publicly dismissed such claims as unfounded.
In a recent statement, Morgan clarified:
“This is not on the cards unless Judge Torres rules against the latest joint motion. If both sides abandon the current agreement and fully pursue their appeals, that might drag the process out—but that’s an improbable outcome.”
His assessment underscores the likelihood that, should the court accept the revised motion, the case could conclude much sooner than anticipated—potentially within months rather than years.
This perspective has bolstered confidence among XRP holders and institutional observers alike, reinforcing the view that a clean resolution is within reach.
👉 Stay ahead of major crypto legal developments with real-time insights.
Why SEC Appeal Withdrawal Is Critical for an XRP ETF
One of the most consequential implications of the joint motion is its impact on future XRP exchange-traded fund (ETF) applications. The SEC’s decision to withdraw its appeal directly influences whether XRP can be classified as a non-security in secondary market transactions.
If the SEC proceeds with its appeal of the Programmatic Sales ruling—a previous decision that found Ripple’s automated XRP sales did not constitute securities offerings—XRP could again face classification as a security. Such a reversal would pose serious challenges:
- Major U.S. exchanges might reconsider listing XRP.
- The SEC would likely reject any pending spot ETF proposals.
- Investor access could become restricted, placing XRP at a competitive disadvantage.
In contrast, a full withdrawal of the appeal would solidify XRP’s status as a non-security for retail and programmatic sales, clearing a major hurdle for ETF sponsors like Bitwise and ARK Invest, who have already expressed interest in launching XRP-based products.
With Solana and other assets advancing toward spot ETF approvals, timing is critical. A favorable outcome in the Ripple case could position XRP as the next major digital asset eligible for institutional-grade investment vehicles.
Understanding the Howey Test and Its Role in Crypto Regulation
Central to the entire Ripple vs. SEC case is the Howey Test—the U.S. Supreme Court framework used to determine whether an asset qualifies as an investment contract under securities law.
Established in SEC v. W.J. Howey Co. (1946), the test hinges on three key criteria:
- An investment of money
- In a common enterprise
- With the expectation of profits derived from the efforts of others
Judge Torres previously ruled that Ripple’s programmatic sales of XRP—automated transactions on public exchanges—did not satisfy all three prongs, particularly the third. Since buyers in these markets did not rely on Ripple’s efforts for profit, those sales were deemed non-securities.
This landmark determination enabled major U.S. exchanges like Coinbase and Kraken to relist XRP in 2023, restoring liquidity and investor access after years of uncertainty.
However, Judge Torres also ruled that institutional sales—direct placements to large investors—did meet the Howey criteria, meaning those specific transactions violated securities laws. This dual classification created a nuanced precedent: XRP itself is not inherently a security, but how it is sold determines regulatory treatment.
As the final phase of the case approaches, Judge Torres’ ultimate stance on the joint motion will not only conclude this chapter but also reinforce or reshape how digital assets are evaluated under U.S. law.
👉 Explore how evolving regulations are defining the future of crypto investing.
Frequently Asked Questions (FAQ)
Q: What is the significance of Ripple dropping its cross-appeal?
A: By agreeing to drop its cross-appeal, Ripple signals willingness to compromise in exchange for lifting the injunction on institutional sales. This gesture strengthens the credibility of the settlement and increases the chances of judicial approval.
Q: How does the SEC’s appeal withdrawal affect XRP ETF chances?
A: If the SEC withdraws its appeal, it effectively accepts that programmatic XRP sales are not securities. This removes a major regulatory barrier to spot ETF approval, making it more likely that asset managers can proceed with filings.
Q: Could XRP still be classified as a security?
A: While programmatic and retail sales have been ruled non-securities, institutional sales were deemed otherwise. Future classification depends on whether courts uphold this distinction—and whether regulators challenge it further.
Q: What happens if Judge Torres rejects the second motion?
A: A rejection could delay resolution significantly, potentially pushing timelines into 2026 if both parties resume appeals. However, given the procedural corrections made, many experts believe another rejection is unlikely.
Q: When could an XRP ETF launch?
A: If legal clarity is achieved in late 2025 and the SEC does not oppose listings, an XRP spot ETF could realistically launch in early to mid-2026—assuming sponsors file promptly and meet compliance requirements.
Q: Does this case set a precedent for other cryptocurrencies?
A: Yes. The court’s application of the Howey Test to different types of crypto sales provides a framework other projects may use to demonstrate compliance. It emphasizes context over blanket classification.
Core Keywords:
- XRP
- Ripple vs SEC
- XRP ETF
- Howey Test
- SEC appeal
- institutional sales
- programmatic sales
- Judge Analisa Torres