Ripple’s courtroom battle with the US Securities and Exchange Commission (SEC) continues to attract attention, but recent speculation about a landmark decision on the legal status of XRP has been dismissed by legal experts.
Contrary to viral social media posts, Judge Analisa Torres is not preparing to redefine crypto law in the United States.
Instead, both Ripple and the SEC are currently seeking what is known as an “indicative ruling,” which would allow the court to consider special circumstances in reducing Ripple’s penalty and modifying the ban on XRP sales to institutional investors, said legal expert Bill Morgan.
This indicative ruling, if granted, would not alter the July 2023 summary judgment that declared XRP is not a security in secondary market transactions.
No change to July 2023 XRP classification
Morgan debunked the claim that Judge Torres would be issuing a new ruling that could reshape crypto classification in the US.
He clarified that the court’s ongoing deliberations concern Ripple’s request for a reduced penalty and the lifting of certain restrictions on XRP’s institutional sales, not a reassessment of XRP’s status itself.
This is incorrect. The decision on the joint motion filed last week will be an indicative ruling on whether there are exceptional circumstances to warrant the Court reducing the penalty and dissolving the injunction.
It will not be a ruling that will redefine the status of
Morgan further stated that both parties have confirmed their intention to leave the original July 2023 summary judgment untouched.
In a recent post, Morgan said that “the parties have agreed that the substantive summary judgment ruling made by Judge Torres in July 2023 will remain in place and will not be vacated, amended or modified.”
$50m settlement rumours follow earlier agreement
Amid this latest court development, there has also been fresh talk of a $50 million settlement between Ripple and the SEC, which some believe to be a new offer.
However, the figure in question stems from a previous settlement agreement finalised in April 2025 and approved by the SEC in early May.
That settlement had reduced Ripple’s proposed penalty from an earlier $125 million to $50 million, with both parties agreeing to the revised terms after months of negotiations.
There has been no new settlement offer since then, despite ongoing community speculation online.
Next update expected in August
With both Ripple and the SEC having jointly asked the court to keep the appeals process on hold, the next major update in the case will likely come from the SEC’s side.
The SEC is due to file a status report by 15 August 2025, which may provide additional clarity on the progression of the case and the court’s response to the indicative ruling request.
XRP holders and the wider crypto market are watching the case closely, especially as regulatory scrutiny of digital assets intensifies both in the US and abroad.
The resolution of Ripple’s legal challenges could set important procedural precedents, particularly concerning penalties and institutional sales of crypto assets following a regulatory breach.
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