Ripple Labs and the U.S. SEC are approaching a critical moment in their ongoing courtroom clash. With Ripple stepping back from its cross-appeal in late June, all eyes are now on July 3—the date by which the SEC must determine its next legal move. The outcome could influence not just the future of XRP but also set the tone for how crypto assets are governed across the U.S. moving forward.
Background of the Legal Case
The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) began in December 2020. The SEC accused Ripple of raising over $1.3 billion through the sale of XRP, claiming these sales were unregistered securities offerings. This lawsuit sparked a wider debate about how cryptocurrencies should be regulated in the U.S.
Judge Torres’ 2023 Ruling
In July 2023, U.S. District Judge Analisa Torres issued a nuanced decision. She ruled that XRP is not a security when sold to retail investors through public exchanges, giving Ripple a partial win. However, the judge also determined that direct sales to institutional investors did fall under securities laws, validating part of the SEC’s argument. The mixed verdict prompted both Ripple and the SEC to file appeals targeting the portions of the ruling with which they disagreed.
Ripple Withdraws Its Appeal
On June 27, 2025, Ripple CEO Brad Garlinghouse publicly confirmed that the company would no longer pursue its cross-appeal regarding institutional sales. He also mentioned the SEC was “expected to drop their appeal” as well, though the agency had yet to take formal action. This announcement came shortly after a court decision rejecting a joint motion from both parties to lessen Ripple’s penalties and lift a permanent injunction.
The SEC’s Upcoming Decision and Deadline
With Ripple stepping back from the appellate process, attention has now shifted entirely to the SEC. The agency has until July 3 to decide whether to continue its appeal, withdraw it altogether, or pursue an alternative legal path. This decision could have lasting consequences—not only for Ripple and XRP but for how all digital assets are regulated across the U.S.
SEC’s Next Move: Decision Expected by July 3
Now that Ripple is no longer appealing, the spotlight is on the SEC. The agency has until July 3 to decide whether to proceed with its appeal, withdraw it, or pursue an alternative legal approach. What the SEC decides could have long-term effects, not just for Ripple and XRP, but for how digital assets are handled throughout the U.S.
Community Buzz and Ripple’s Next Chapter
The XRP community is showing renewed optimism as the July 3 SEC deadline approaches. Influential voices like Captain Redbeard (@Brett_Crypto_X) have called it a potential “moment of truth,” with hopes that a complete SEC withdrawal could trigger a sharp XRP price rebound and restore investor trust. At the same time, a favorable outcome would clear the path for Ripple to shift entirely into growth mode—expanding its global payments network, building stronger partnerships, and attracting more institutional interest without the weight of ongoing legal issues.
Final Thoughts
With the July 3 deadline approaching, the Ripple vs. SEC case is nearing a major turning point. What the SEC decides next could either bring the long legal fight to a close or keep the uncertainty going for XRP and other cryptocurrencies. For Ripple, putting the case behind them would allow the company to focus entirely on growing its business, forming new partnerships, and gaining investor trust. More importantly, the decision could help shape how crypto assets are treated under U.S. law, setting a precedent for the future of digital finance nationwide.
