XRP Lawsuit Unlikely to Extend Into 2026, Expert Says

The ongoing lawsuit involving XRP and Ripple continues to capture attention, but according to legal expert Bill Morgan, a resolution stretching into late 2026 is highly improbable.

Since the U.S. Securities and Exchange Commission (SEC) initiated legal action against Ripple in December 2020, the case has been plagued by speculative timelines. The latest prediction, shared by an altcoin investor named Bale, suggests that the final judgment won’t arrive until the end of 2026. However, Bale offered no supporting evidence, citing only that August might be a key month for developments in the case.

Attorney Bill Morgan was quick to reject these rumors. In a recent statement via X (formerly Twitter), Morgan firmly asserted that such a prolonged delay is “not on the cards.” In his view, the only scenario in which the lawsuit could carry on into 2026 is if Judge Analisa Torres turns down the joint motion currently seeking to lower Ripple’s penalty and lift a permanent injunction.

This motion, which Ripple and the SEC refiled in June, comes after Judge Torres rejected a similar filing in May due to procedural issues and insufficient grounds for granting such a ruling. The updated motion addresses those concerns, and Ripple has also provided a supplemental letter to reinforce their argument.

The goal is to cut the fine from $125 million to $50 million and eliminate the permanent injunction hindering Ripple’s operations. As it stands, both Ripple and the SEC await Judge Torres’ decision on the updated request. If granted, this ruling would be a key step toward formalizing a settlement.

Bill Morgan noted that if Judge Torres denies the motion once again, the result could be a breakdown in settlement talks and a resumption of appeals at the Second Circuit. While legally feasible, Morgan argued that such an outcome is unlikely since both parties have demonstrated a shared interest in settling the case rather than prolonging it through further litigation.

In a clear sign of this cooperative stance, Ripple and the SEC jointly requested on June 16 that the U.S. Second Circuit pause their respective appeals until August 15, 2025. This pause is intended to provide additional time for settlement negotiations.

Should Judge Torres approve the indicative ruling, both parties are expected to ask the Second Circuit for a temporary remand. This would enable the lower court judge to formally reduce Ripple’s penalty and vacate the injunction. Subsequently, the SEC and Ripple would likely move to dismiss their appeals completely.

Conversely, a rejection of the motion would leave the SEC and Ripple with limited options. They could either refile the motion with stronger arguments or decide to accept the existing judgment, which includes a $125 million penalty and ongoing restrictions against Ripple.

Despite these uncertainties, the prevailing sentiment—shared by Morgan and many XRP advocates—is that the case will not drag on into late 2026. The cooperation seen in recent filings, along with mutual interest in resolving the matter, supports the prediction that a conclusion is within reach, well before such a distant timeline.

Related: Expert Advice: Sell XRP If You’re Confused

As the Ripple-SEC case develops, all eyes remain on Judge Torres’ forthcoming decision, which will ultimately shape the next chapter of this high-stakes legal saga.