It might appear that the XRP lawsuit is closed, yet the SEC still needs to vote to bring a full closure. Judicial challenges. Although Ripple Labs has recently retracted its cross-appeal, former SEC staff Marc Fagel has warned that the legal process is not complete. According to him, the U.S. Securities and Exchange Commission (SEC) has yet to cast its ballot to formally lift its appeal to have the case closed. Such a remark has added another creep of doubt to what had been presumed by most members of the XRP community as an end to the long years of legal battle.

Legal Analysts Say XRP Case Not Fully Resolved

Former SEC attorney Marc Fagel provided an update on the ongoing status of the Ripple case in a public statement. He emphasized that the SEC must take additional action to end the case formally. According to Fagel, Ripple’s withdrawal of its appeal does not automatically close the matter.

To be slightly more clear: The SEC still has to vote to drop their appeal in order for this to be completely over. But they 100% will do so.

— Marc Fagel (@Marc_Fagel) June 27, 2025

Fagel explained that the SEC’s internal process requires a formal vote to withdraw its appeal. “They voted to authorize a settlement agreement; simply dropping the case is a different action,” he wrote. Fagel also said it is unclear whether the SEC’s prior vote included approval to drop the appeal.

His comments were in response to a question posed by XRP attorney Bill Morgan. Morgan asked if a new SEC vote is necessary to finalize the settlement. Fagel noted that the situation is unusual and lacks precedent within the agency.

Ripple’s Legal Position and XRP Status

The legal department of Ripple has always rejected the claim that they did something wrong in regard to the classification of the XRP. The company insists that its token does not qualify as a security, in particular, for sale to retailers. Ripple’s position gained support from Judge Torres’ ruling, which stated that XRP, on its own, does not constitute a security.

Attorney Bill Morgan supported this interpretation. He said the court’s finding is not about how XRP is sold but what XRP fundamentally is. Morgan pointed out that settlement deals such as the present case do not embody a confession.

He also indicated that the definition of XRP as a commodity complies with the rationale of the judge. This point supports the position of Ripple that XRP does not belong to the conventional securities.

Public Response and Ongoing Debate

The announcement that Ripple has dropped its appeal initially elated the XRP crowd. Most of the people thought that the case had finally come to an end. Nevertheless, Fagel’s statements made some legal experts change their conclusions.

On clarification by Fagel, attorney Bill Morgan changed his previous statement. He recognized that the SEC still needs to vote. This nuance of the case lays stress on the legal intricacy to which the case exposes itself and demands an accurate response on the part of the agency.

The problem has brought new discussions within the crypto society concerning the influence of legal proceedings on the nature of tokens. It also highlights how court and agency procedures differ when it comes to settling enforcement actions.

SEC’s Next Move Will Decide Case Closure

The outcome of the Ripple case now depends on whether the SEC follows through with its appeal withdrawal. Marc Fagel and other legal experts expect that the agency will eventually vote to end the matter. However, until that action is taken, the case remains open from a legal standpoint.

Ripple continues to operate as the broader crypto industry watches the situation unfold. The outcome could influence future enforcement actions and regulatory clarity in the United States.