Ripple Labs has taken a major step forward in its long-standing legal battle with the U.S. Securities and Exchange Commission (SEC), as both parties have officially submitted a Settlement Agreement Letter to the court. The XRP community is celebrating this as a breakthrough moment, but legal experts caution that the journey isn’t over yet. While the deal between Ripple and the SEC is a promising development, it still requires judicial approval and the completion of several legal steps before it can be considered fully resolved.

The case, which began in December 2020, has had a major impact on the cryptocurrency industry, especially on XRP, the native token of the Ripple network. The SEC accused Ripple of conducting unregistered securities offerings through its sales of XRP. Ripple has consistently denied the allegations, arguing that XRP is not a security. After nearly four years of courtroom drama, legal filings, and partial rulings, the two sides appear ready to move forward—but the court must still sign off on their agreement.

According to well-known attorney James K. Filan, Judge Analisa Torres will first review the proposed settlement to determine whether it aligns with the public interest. Her approval is necessary for the next phase of the legal process to begin. Until she issues a formal decision, the agreement remains tentative and the case technically remains open.

What Comes Next in the Ripple Case?

Legal experts outline four key steps that must be completed before Ripple can declare final victory in its case against the SEC. The first step involves Judge Torres reviewing the settlement terms and deciding whether to dissolve the existing injunction that had restricted Ripple’s use of certain funds. As part of the agreement, the SEC would receive a $50 million fine, while the remaining escrow funds would be returned to Ripple.

If Judge Torres approves the settlement, both Ripple and the SEC will file a joint request to the Second Circuit Court of Appeals. This request will seek a limited remand, which would temporarily send the case back to Judge Torres’ courtroom so she can finalize the necessary actions, including lifting the injunction and releasing the funds.

The third step involves both parties filing a formal joint motion with Judge Torres to implement these actions. Once this is completed and executed, the final step would be for both Ripple and the SEC to request the dismissal of their respective appeals in the Court of Appeals. This would officially close the case and end all ongoing litigation.

XRP Community Remains United

Throughout the legal battle, the XRP community has remained vocal and active. Attorney Bill Morgan highlighted that over 80,000 XRP holders joined attorney John Deaton to represent their interests in the case. According to Morgan, there has not been a single XRP holder on record who has expressed support for the SEC’s position. He believes this strong public backing could influence Judge Torres’ decision, as it demonstrates that retail investors overwhelmingly support a resolution favorable to Ripple.

This sentiment, Morgan argues, strengthens Ripple’s case that the settlement—including the $50 million fine and return of escrow funds—is in the public’s best interest. For many XRP holders, the resolution of this case is not just about legal victory, but also about restoring market confidence and clarity in the crypto space.

Will the Judge Approve the Deal?

While enthusiasm is high among Ripple supporters, some legal experts are taking a more cautious view. Former SEC regional director Marc Fagel stated that Judge Torres’ previous ruling regarding Ripple’s institutional XRP sales is unlikely to be overturned by appellate courts. However, he also noted that if the judge were to reject the settlement, it remains unclear whether the SEC would continue to pursue the case or attempt a new legal strategy.

Still, momentum appears to be on Ripple’s side. With regulators shifting their stance toward more crypto-friendly approaches and Ripple showing strength in its legal positioning, many believe Judge Torres is likely to approve the settlement. If she does, it would not only mark the end of one of crypto’s longest-running court cases but could also set a significant precedent for how digital assets are treated under U.S. securities law.