SEC vs Ripple: Appeal Withdrawal Decision Expected Prior to August 15 Deadline

Legal tensions surrounding the long-standing SEC vs Ripple Labs litigation appear to be reaching their conclusion. Attorney Bill Morgan, a legal expert closely following the $XRP case, has publicly indicated that the Securities and Exchange Commission is "more likely than not" to file a motion for voluntary dismissal of its appeal before the August 15 joint status report deadline. This development follows Ripple's strategic decision to withdraw its cross-appeal and place the $125 million civil penalty into escrow as required by the court.

The SEC's apparent delay in formally withdrawing its appeal is attributed to internal procedural requirements. Former SEC attorney Marc Fagel has clarified that the Commission must conduct an internal commissioner vote to authorize the appeal dismissal—a procedural step expected to be addressed during the SEC's scheduled closed-door meeting on August 7. While the appeal technically remains active until formal notice is filed with the court, all procedural indicators suggest the SEC is preparing to exit the litigation.

Ripple has completed all necessary steps on its end to facilitate case closure. Court documentation confirms that the company has formally terminated its appeal, deposited the full monetary penalty into escrow, and signaled readiness to conclude the matter. According to legal filings, only the SEC's procedural clearance stands between the current litigation pause and final resolution. Upon the SEC's anticipated withdrawal, the escrowed funds will transfer to the U.S. Treasury while the existing judicial injunction regarding institutional sales will remain in force.

The $XRP investment community has responded to these developments with heightened on-chain activity. Blockchain analytics reveal increased accumulation patterns among large-balance holders, commonly referred to as "whales" in trading terminology. This accumulation trend appears driven by expectations that regulatory clarity will establish pathways for potential XRP exchange-traded products and broader institutional adoption within U.S. markets. Trading platforms have noted increased interest in XRP pairs as the case approaches resolution.

If the SEC proceeds with filing its withdrawal motion before the August 15 deadline, the lawsuit that has defined XRP's regulatory status for nearly five years will finally reach its conclusion. Market participants across digital asset exchanges are closely monitoring regulatory developments in Washington for confirmation of this anticipated outcome.