Ripple’s Legal Battle Wasn’t Dragged by the SEC, Says Former Official
As the long-running legal standoff between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) inches toward resolution, a former SEC insider has come forward to challenge a widely held belief: that the Commission was responsible for prolonging the case.
Marc Fagel, an ex-SEC regional director and veteran securities litigator, took to X (formerly Twitter) to clarify that Ripple—not the SEC—was largely behind the drawn-out appeals and procedural delays that kept the case alive well into 2024.
I had an exchange with another ex-SEC attorney who was unsure if another vote was needed?
— bill morgan (@Belisarius2020) August 4, 2025
A Case That Should’ve Ended Sooner
The Ripple vs. SEC lawsuit—arguably one of the most important enforcement cases in crypto history—was expected to wrap up earlier this year. Yet it lingered for months due to a cross-appeal and failed attempts at settlement.
Fagel explained that Ripple made a move to renegotiate the court’s previous ruling. The company sought to eliminate a standing injunction and lower the $125 million penalty imposed for unregistered institutional XRP sales. But the judge flatly rejected the proposal.
“The parties originally tried to settle the case on terms that made dismissing the appeals contingent on the court vacating the injunction and reducing the penalty,” Fagel wrote. “The court refused. So they had to restart the process.”
That unsuccessful negotiation essentially reset the timeline, adding months of litigation before the case finally wound down in late June.
Ripple’s Strategic Gamble Under New SEC Leadership
After the 2024 U.S. election ushered in new leadership at the SEC—under Chair Paul Atkins—Ripple hoped for a friendlier regulatory climate. The company moved to eliminate an injunction stemming from the previous administration, which barred it from selling XRP to institutional investors without registration.
But political winds change faster than legal processes. Despite the shift at the Commission, the courts didn’t budge. Fagel emphasized that the delays were simply part of the standard pace of federal litigation, especially in complex securities cases, not the result of any SEC foot-dragging.
Two weeks before the cross-appeal was dropped, Ripple and the SEC filed what observers described as a half-hearted request to continue litigation. Legal analysts at the time pointed out that the filing didn’t address core judicial concerns—possibly signaling that both sides were ready to step back.
The Final Chapter: August 15
Now, all that remains is a formal procedure. Both parties are required to submit filings to formally withdraw their appeals. The SEC’s final deadline to act is August 15, 2025.
Once the paperwork is filed, the $125 million penalty—currently held in escrow—will be released to the U.S. Treasury.
“They’re not going to be ‘cleared.’ That they illegally raised hundreds of millions through unregistered securities sales is settled law,” Fagel emphasized.
In essence, Ripple won’t walk away with a clean slate. The court’s finding that its institutional XRP sales violated federal securities laws remains intact and enforceable. While the company may be closing one chapter, its legal record has been permanently marked.
