Ripple Public Listing Hinges on Judge Torres Sales Ban Ruling

• Ripple’s legal dispute with the SEC hinges on Judge Torres’ agreement to a reduced fine and a motion for relief.
• The appeals process is paused while the SEC reviews Ripple’s dual requests.
• The timeline for resolution may run into late 2026 or early 2027, depending on outcomes.

Ripple’s case with the U.S. Securities and Exchange Commission (SEC) remains in limbo as both parties await crucial decisions that could influence the company’s future. The legal process has paused while the SEC considers a proposed settlement and a motion that, if approved, could allow Ripple to pursue an IPO.

Notably, the appeal before the Second Circuit has been held in abeyance—temporarily frozen. This allows the SEC’s full commission to review two major requests. The first is a reduced fine from $125 million to $50 million. The second is Ripple’s request to lift Judge Analisa Torres’s prohibition on the company engaging in further institutional sales of XRP. 

This request would assess whether the judge is willing to modify her earlier injunction to permit Ripple to conduct private token sales under certain exemptions.

Ex-SEC Lawyer Farrell: Why Ripple’s IPO Hinges on Lifting Sales Ban

If the court declines or delays, the appeal could resume, with arguments possibly held in 2026. Former SEC lawyer James Farrell noted that without relief, Ripple faces long-term restrictions that could block a potential IPO.

Farrell noted that without a modification from Judge Torres, the company may not be able to go public for more than three years. This keeps Ripple sidelined while other crypto firms move towards public listings.

Related: Motion Granted: Second Circuit Court Pauses SEC vs Ripple Appeal for Talks

What Are the Potential Timelines if SEC Separates Settlement Decisions?

Farrell also laid out different paths depending on how the SEC handles the two pending requests (fine reduction and sales ban lift). If they are independent and the SEC agrees to settle but denies the indicative motion, Ripple can finalize the settlement quickly and dismiss the appeal.

However, it would still need to ask Judge Torres separately to revise her ruling. That could take three to six months, with no assurance of success, especially since no new facts have emerged since her original decision.

if the SEC views the requests as a package deal but only approves the fine reduction (denying the sales ban relief), the pause on the appeal would end. The Appeals Court would then issue a new briefing schedule, likely pushing oral arguments into January 2026 and a final decision possibly by August 2026.

What is Ripple’s Best-Case Scenario for a Settlement Timeline?

The quickest route, though still involved, happens if the SEC approves both the reduced fine and indicates support for lifting the sales ban. Judge Torres would then have three possible responses: defer her decision, deny the motion, or indicate willingness to grant it if the appellate court allows her to act.

Farrell pointed out that similar motions in other cases have taken anywhere from a few weeks to six months. If Judge Torres signals support, the case would return briefly to the appellate court to authorize her action, then back again to finalize the injunction modification. Only then could a formal settlement be signed and the appeal voluntarily dismissed.

How Long Could XRP Legal Uncertainty Realistically Last?

Farrell also warned about the most unpredictable path: Judge Torres might initially indicate support for lifting the sales ban but then change her mind after full review. That outcome would send the entire case back to the Appeals Court again, extending the legal uncertainty well into 2027.

Related: SEC Actions Across Binance, Ripple Suggest Coordinated Resolution Push

In any outcome, Ripple’s legal status remains in question. With regulatory approval, settlement, and IPO aspirations all on the line, the path forward will likely take months—if not years—to fully resolve.