- Settlement agreement was signed between SEC and Ripple parties on different dates in spring 2025.
- Parties must obtain an indicative ruling from Judge Torres before proceeding with dismissal.
- Legal expert Bill Morgan estimates a conclusion within several weeks if the ruling is granted.
Legal expert Bill Morgan has detailed the multi-step settlement process between the SEC and Ripple, revealing the complex procedural requirements necessary to finalize their agreement and dismiss pending appeals. The settlement agreement was signed by the Ripple parties on April 23, 2025, followed by the SEC’s signature on May 8, 2025.
The parties successfully obtained a 60-day abeyance period from April 16 to June 16, 2025, to halt progress on both the appeal and cross-appeal while pursuing settlement implementation. This procedural step allowed time to address the technical requirements for modifying the original judgment and obtain court approval for the agreed-upon terms.
Multiple Court Motions Required for Settlement Implementation
The first attempt to obtain court approval through a Rule 62.1 motion filed on May 8, 2025, was denied by Judge Torres due to procedural errors. The court determined that the parties had not properly addressed Rule 60 requirements. This required a corrected filing that properly complied with the legal standards for modifying a judgment.
A second joint motion addressing Rule 60 was filed on June 12, 2025, and attempted to remedy the procedural deficiencies identified in the initial denial. This corrected motion seeks an indicative ruling from Judge Torres that would allow the parties to proceed with their settlement agreement and request a limited remand from the Court of Appeals.
The procedural complexity stems from the fact that appeals are pending while parties seek to modify the underlying judgment. Federal court rules need specific steps to obtain relief when cases are under appellate review. This creates the multi-stage process outlined by Morgan.
Following the June 16, 2025, deadline, the SEC notified the Court of Appeals and requested an extension of the abeyance period for both the appeal and cross-appeal. This step ensures that appellate proceedings remain suspended while district court proceedings continue.
Resolution Could Happen In The Next Few Weeks
If Judge Torres grants the requested indicative ruling, the parties will file a motion with the Court of Appeals seeking limited remand to the district court. This procedural step would allow Judge Torres to consider the settlement terms and modify the judgment accordingly.
Upon obtaining a limited remand, the parties would file a motion with Judge Torres seeking dissolution of the injunction and approval of the reduced $50 million fine. These elements constitute the core terms of the settlement agreement between the SEC and Ripple.
The final step involves filing a motion with the Second Circuit Court requesting dismissal of both the appeal and cross-appeal once the settlement terms are implemented. This would formally conclude the litigation and eliminate any remaining uncertainty about the case outcome.
When one observer pessimistically commented that the process might extend until 2035, Morgan provided reassurance that resolution should occur “within the next several weeks” if the indicative ruling is granted.
Related: SEC, Ripple Request Extended 60-Day Pause in Appeal to Pursue Settlement: What’s Next for XRP?
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