XRP saw renewed demand on June 24 as investors focused on the ongoing SEC vs. Ripple case. Traders anticipated Judge Analisa Torres’ decision on a revised joint settlement motion, filed earlier this month.
Ripple agreed to drop its cross-appeal if Judge Torres lifts the injunction that blocks XRP institutional sales. In exchange, the SEC would also withdraw its appeal and lower the proposed penalty to $50 million.
Markets responded positively to the development. The move comes as digital assets recover from recent price pressure tied to Middle East tensions. Still, XRP remains below its May high of $2.6553, a level reached just before Judge Torres rejected the initial motion.
Ripple’s Second Motion and Legal Strategy
On June 12, the SEC and Ripple submitted their second joint request for an indicative ruling. The revised motion aimed to correct procedural missteps from the first filing, which Judge Torres had rejected in May.
She previously cited failures in procedural compliance and insufficient justification for how the deal would serve institutional investors and the public. Ripple responded by filing a Supplemental Letter on June 17 to strengthen its argument.
Despite ongoing uncertainty, the latest motion has revived optimism among XRP holders and ETF market watchers.
Lawyer Bill Morgan Dismisses 2026 Delay Rumors
Addressing online speculation, pro-crypto lawyer Bill Morgan downplayed suggestions that a final decision may be delayed until late 2026.
He stated:
“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 view suggests that if the court accepts the joint motion, the case could end much sooner than expected.
XRP ETF Approval Hinges on SEC Appeal Withdrawal
The SEC’s decision to abandon its appeal could determine the future of pending XRP-spot ETF filings. If the agency chooses to appeal the Programmatic Sales ruling, XRP might again face classification as a security in secondary market sales.
Such a classification would put XRP at risk. Exchanges might de-list it, and the SEC could reject ETF proposals. That outcome could isolate XRP while other assets, like Solana, move forward with spot ETF approvals.
Background: What Is the Howey Test?
The Howey Test defines which assets fall under U.S. securities laws. It includes three elements:
An investment of money,
In a common enterprise,
With the expectation of profits primarily from others’ efforts.
Judge Torres previously ruled that XRP’s programmatic sales did not meet all three prongs, especially the third one. This distinction led to XRP’s re-listing on major U.S. exchanges in 2023.
As the case unfolds, Judge Torres’ final stance will directly impact both XRP’s legal clarity and its eligibility for a spot ETF.
