A new legal assessment suggests the ongoing XRP lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC) may be dismissed before the upcoming August 15 deadline. Legal expert Bill Morgan shared this view, pointing to procedural progress and the current state of appeals in the case.

Lawyer Expects Appeal Dismissal Before Status Report Deadline

In a recent statement on X, lawyer Bill Morgan said it is more likely than not that the SEC and Ripple will withdraw their respective appeals before the August 15 status update deadline. Morgan explained that August 15 is not a formal deadline for appeal dismissals, but the update to the status of the appellate court will presumably confirm the validity of the fact that the appeals are withdrawn.

The 🧵 contains inaccuracies. There is no decision pending from the Court.

Judge Torres’ role is over.

We are just waiting for the SEC commissioners to vote on dismissing the Appeal and the parties to take that final step dismissing their respective appeals.

Ripple already… https://t.co/ZTQozwlVv9

— bill morgan (@Belisarius2020) August 5, 2025

As Morgan stressed, Judge Analisa Torres has already performed her judicial tasks in the case. She does not have any pending decisions on her bench, and the very last steps are to be undertaken by the involved parties. Morgan further stated that Ripple had once promised to withdraw its appeal on some conditions that will be achieved shortly.

The issue was also commented on by a retired SEC official, Marc Fagel. He confirmed that Judge Torres’ involvement in the lawsuit has concluded and that the matter now depends on decisions made by Ripple and the SEC.

Settlement Progress and $125M Penalty Escrow

Fagel noted that Ripple has already transferred the $125 million civil penalty into an escrow account. The funds are currently managed by the company’s legal counsel. However, the penalty has not yet been transferred to the U.S. Treasury. This transaction is expected to occur once the appeal process is officially closed.

According to Fagel, once both sides dismiss their appeals, Judge Torres’ earlier ruling will automatically go into effect. He said this would finalize the case, as the ruling does not require further court interpretation.

The developments suggest that a full resolution of the case may occur ahead of the August 15 reporting deadline. This would formally end a legal dispute that began in December 2020.

XRP Corporate Adoption Increases Amid Legal Clarity

Some of the new developments that have been linked with the imminent resolution include the rising adoption of XRP by institutional investors. Legal analyst Bill Morgan added that several listed companies have purchased XRP on their books over the last few quarters.

Recent with the SEC more companies or planning to hold XRP on the balance sheet:

1. Form 10-Q filing of Flora Growth Corp shows it holds XRP (and Solana and Eth) on its balance sheet.
According to the company’s website it acquired digital assets to strengthen its balance sheet.… pic.twitter.com/VCDA9vOq6w

— bill morgan (@Belisarius2020) August 5, 2025

Filings at the SEC indicate that Flora Growth Corp and Hyperscale Data Inc. reported holding XRP. Hyperscale’s subsidiary, Ault Capital Group, has also announced a plan to invest $10 million into XRP. These moves signal growing use of XRP in treasury operations and cross-border settlement strategies.

Nature’s Miracle, a vertical farming firm, recently declared a $20 million XRP treasury strategy backed by an SEC-approved S-1 registration. The firm stated its intent to use XRP as a core component of its capital allocation plan.

Analysts Predict Case Resolution May Include Reduced Penalty

Several analysts estimate a 70–90% likelihood of a negotiated settlement occurring soon. Some speculate that the final terms may include a reduced civil penalty for Ripple. The possible figure mentioned is around $50 million, lower than the original amount.

Notably, the settlement might not involve any injunctive relaxations that will limit the prospective business operations of Ripple. Without such restrictions, Ripple would be able to keep providing XRP to business and retail participants without imposing new compliance blockades.

Both the legal community and XRP holders are following the developments as the August 15 deadline of providing the status report approaches. This week and the following days could offer the ultimate respite in one of the most observed cryptocurrency cases in America.