The XRP market experienced a notable surge in investor interest on June 24, driven by developments in the long-running legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). Market participants closely watched for Judge Analisa Torres’ response to a revised joint settlement motion filed earlier in June, reigniting optimism around regulatory clarity and the potential for an XRP spot ETF.
This renewed momentum comes amid broader recovery in digital asset markets, which had recently faced downward pressure due to global geopolitical tensions. While XRP has yet to reclaim its May peak of $2.6553—reached just before the initial motion was rejected—the latest legal maneuvers have rekindled bullish sentiment across the ecosystem.
👉 Discover how regulatory clarity is shaping the future of digital assets.
The Revised Joint Motion: A Path to Resolution?
On June 12, Ripple and the SEC jointly submitted a second request for an indicative ruling, aiming to correct procedural shortcomings that led Judge Torres to reject their first attempt in May. The updated filing seeks court approval for a mutual withdrawal of appeals, contingent on specific conditions that could reshape XRP’s regulatory standing.
Under the proposed agreement:
- Ripple would drop its cross-appeal regarding institutional sales.
- The SEC would withdraw its appeal of the Programmatic Sales ruling.
- The penalty imposed on Ripple would be reduced to $50 million.
This strategic compromise signals a strong willingness from both parties to close the chapter on years of litigation. Judge Torres previously dismissed the initial motion due to insufficient justification for how the settlement would benefit institutional investors and the public. In response, Ripple strengthened its case with a Supplemental Letter filed on June 17, addressing these concerns directly.
If approved, this motion could mark a definitive turning point—not only resolving outstanding legal disputes but also laying the groundwork for greater institutional participation in XRP trading.
Legal Expert Dismisses 2026 Delay Speculation
Amid growing anticipation, rumors circulated online suggesting a final decision might not arrive until late 2026. However, prominent crypto attorney Bill Morgan has publicly refuted such claims, calling them highly unlikely under current circumstances.
“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.”
Morgan’s assessment offers reassurance to investors concerned about prolonged uncertainty. His analysis suggests that if the court accepts the revised motion, a resolution could come within months rather than years. This accelerated timeline would align with increasing market demand for clear digital asset regulations and could unlock new opportunities for XRP adoption.
👉 Stay ahead of crypto regulatory shifts with real-time market insights.
XRP ETF Prospects Depend on SEC Appeal Decision
One of the most consequential outcomes of this case lies in its impact on pending applications for a spot XRP exchange-traded fund (ETF). Unlike Bitcoin or Ethereum, XRP has not yet seen an approved spot ETF in the U.S.—a gap largely attributed to lingering regulatory ambiguity.
The SEC’s decision to withdraw its appeal will be pivotal. If the agency proceeds with the appeal, it may reassert that XRP qualifies as a security even in secondary market transactions. Such a stance could trigger exchange delistings and lead to automatic rejection of all active ETF proposals.
Conversely, dropping the appeal would reinforce Judge Torres’ prior ruling that certain XRP sales—particularly programmatic ones—do not meet the full criteria of the Howey Test for securities classification. This clarity would significantly improve the chances of ETF approval, placing XRP on more equal footing with other major cryptocurrencies like Solana, which are already advancing through the ETF pipeline.
Market analysts believe that an ETF greenlight could drive substantial inflows into XRP, boosting liquidity and long-term price stability.
Understanding the Howey Test and Its Role in Crypto Regulation
At the heart of the Ripple vs. SEC case is the Howey Test, a legal framework established by the U.S. Supreme Court to determine whether an asset qualifies as an investment contract—and therefore a security—under federal law.
The test hinges on three key elements:
- An investment of money
- In a common enterprise
- With the expectation of profits primarily from the efforts of others
Judge Torres’ landmark 2023 ruling found that while Ripple’s institutional sales of XRP met all three criteria, its programmatic sales (via exchanges) and distribution to developers did not—particularly failing the third prong related to reliance on third-party efforts.
This nuanced distinction allowed major U.S. exchanges to relist XRP, restoring access for retail investors and reigniting trading volume. As the case moves toward conclusion, her final determination will not only define XRP’s status but may also set a precedent for how other digital assets are evaluated under securities law.
Frequently Asked Questions (FAQ)
Q: What is the significance of the SEC withdrawing its appeal?
A: If the SEC drops its appeal, it signals acceptance of Judge Torres’ ruling that some XRP sales aren’t securities. This paves the way for clearer regulation and improves the odds of approving a spot XRP ETF.
Q: Could XRP still be classified as a security?
A: While institutional sales were deemed securities, programmatic and retail trading were not. A final settlement would solidify this dual classification, reducing legal risk for most holders.
Q: How soon could an XRP ETF be approved?
A: Timing depends on regulatory clarity. If appeals end in mid-to-late 2025, filings could be reviewed by late 2025 or early 2026—assuming favorable SEC leadership and market conditions.
Q: Why does the Howey Test matter for cryptocurrencies?
A: It determines whether a digital asset falls under strict securities regulations. Passing or failing influences exchange listings, fundraising rules, and investment product approvals like ETFs.
Q: What happens if Judge Torres rejects the second motion?
A: The case could revert to full appeals, prolonging uncertainty. However, both parties have shown strong incentive to settle, making rejection less likely this time.
Final Outlook: Clarity Ahead for XRP?
As legal developments unfold, the crypto community watches closely. The joint motion represents more than just a procedural step—it reflects a possible endgame in one of the most influential crypto regulatory battles to date.
With core keywords including XRP, SEC, Ripple, ETF, Howey Test, legal clarity, spot ETF, and Judge Analisa Torres, this case continues to dominate conversations around digital asset regulation and market evolution.
Should the court approve the revised motion, we may witness:
- Resumption of institutional-grade XRP offerings
- Accelerated ETF application reviews
- Strengthened investor confidence
- Broader integration of XRP in financial infrastructure
👉 Explore compliant trading platforms where regulatory clarity meets innovation.
While challenges remain, the path forward appears increasingly clear. For XRP holders and crypto advocates alike, 2025 could become a landmark year defined not by litigation—but by resolution.