- The SEC postponed its XRP ETF decision to July 22 as Ripple’s $50M settlement deal awaits crucial court approval.
- Ripple and the SEC agreed to pause appeals while seeking court consent to revise a $125M penalty and dissolve the injunction.
- XRP’s ETF future remains uncertain amid shifting SEC policy and ongoing legal proceedings set for updates in July and August.
A decision regarding Franklin Templeton’s planned spot XRP ETF has been postponed until July 22 by the U.S. Securities and Exchange Commission (SEC). This delay occurs while Ripple Labs and the SEC work together to get a revised settlement agreement approved by the court. The development underscores the regulatory ambiguity surrounding crypto ETFs and complicates the long-running XRP case.
On June 16, the SEC and Ripple notified the U.S. Court of Appeals for the Second Circuit of their joint intent to pause appeal proceedings. Both parties agreed to wait for a district court ruling on their renewed motion to modify the final judgment. The motion seeks approval for a $50 million payout by Ripple, with the remaining $75 million from the civil penalty returned to the company.
Settlement Faces Legal Obstacles
The original settlement was approved internally by the SEC on May 8. However, the district court rejected the request to revise the final ruling on May 15. The judge cited the lack of “exceptional circumstances” under Rule 60(b) as the basis for denial. Consequently, Ripple and the SEC renewed their motion on June 12 with strengthened legal arguments.
The outcome of this request is crucial. If the court agrees, both Ripple and the SEC will request a limited remand to finalize the changes. After that, they plan to withdraw their respective appeal and cross-appeal. Until then, both parties have agreed to keep the appellate proceedings on hold. The next status update to the court is due by August 15, 2025.
ETF Outlook and Regulatory Shifts
Besides Ripple’s legal drama, XRP’s ETF prospects remain uncertain. The SEC has already received applications from asset managers including Bitwise, ProShares, and 21Shares. These firms seek to list ETFs tied to XRP and Solana (SOL).
The SEC’s stance on crypto has shifted under President Trump’s administration. Paul Atkins, the new SEC Chair, has dropped several major enforcement actions. Moreover, Trump has hinted at including XRP and SOL in a national crypto stockpile plan.
However, regulatory clarity remains elusive. The market now awaits not just ETF approvals but also the final resolution of Ripple’s settlement. Hence, the July 22 ETF deadline and the August 15 court update will be pivotal for XRP’s market trajectory.
