Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have jointly filed a motion to pause their appeals process. The filing, submitted to the U.S. Court of Appeals for the Second Circuit on April 10, 2025, requests a 60-day stay — signaling that both parties are actively working toward a final settlement.
This motion not only marks a possible turning point in one of the crypto industry’s most high-profile legal battles, but also raises the stakes for the future of digital asset classification across U.S. markets.
Legal Chessboard: Why Ripple and the SEC Are Pausing Appeals
According to the joint court document, Ripple and the SEC are in advanced settlement talks. The pause would allow the SEC’s commissioners time to formally review and approve a final agreement. Sources close to the matter suggest that Ripple has agreed to pay a reduced civil penalty — around $50 million — and the SEC may drop its pursuit of a permanent injunction on future XRP sales.
Furthermore, the motion outlines plans to dismiss all claims against Ripple’s top executives, Brad Garlinghouse and Chris Larsen — a crucial piece of the puzzle that Ripple’s legal team had long been fighting for.
A key paragraph from the filing reads:
“The parties respectfully request the Court pause the appeal for 60 days while the SEC reviews the proposed terms. The resolution, if approved, would eliminate the need for further litigation.”
XRP Rallies as Market Smells Closure
Following the news, XRP surged past the $2.00 mark for the first time since mid-2023, gaining over 17% in just 48 hours. Analysts attribute the spike to increased investor confidence and renewed hope for regulatory clarity.
CryptoQuant’s Moreno stated:
“A resolution here could finally unshackle XRP from its legal baggage. That kind of clarity is rocket fuel for price action.”
At its peak in 2021, XRP was the third-largest crypto asset by market cap. The ongoing lawsuit, which began in December 2020, significantly suppressed its performance compared to peers like Solana and Ethereum. Now, with the cloud of uncertainty lifting, XRP is once again turning heads in institutional circles.
Industry Impact: Will This Define Crypto’s Legal Future?
The Ripple case is more than just a battle between a fintech firm and a regulator — it has become a legal testing ground for how U.S. law treats cryptocurrencies. A final settlement could set a strong precedent for how “programmatic sales” of crypto are judged, especially regarding whether tokens sold via exchanges should be classified as securities.
Legal analyst Jake Chervinsky tweeted:
“If the SEC settles without labeling XRP a security, it undermines their broader position. This could shift the entire enforcement strategy going forward.”
This development could also embolden other crypto firms under scrutiny, including Coinbase, Binance.US, and Consensys, to pursue settlement negotiations or even challenge the SEC’s regulatory scope in court.
Ripple’s Position in the Post-Settlement Landscape
Ripple itself may gain a significant strategic edge. With legal uncertainty out of the way, Ripple could push forward its partnerships with central banks and payment networks globally. Over 100 institutions already use its native XRP Ledger for cross-border transfers — a number that could grow if XRP gains clear legal standing in the U.S.
Experts also suggest that other utility tokens could benefit from the regulatory halo effect if XRP is deemed not to be a security in this outcome. In short, a pro-Ripple resolution could thaw the crypto winter from a regulatory standpoint.
Conclusion
The Ripple-SEC joint motion to pause appeals isn’t just another case update — it’s the clearest signal yet that a long-awaited resolution is near. The crypto community now waits with bated breath to see if this high-stakes truce becomes a landmark moment for digital asset regulation in the United States.
As regulatory frameworks evolve, Ripple’s battle — once viewed as a cautionary tale — may soon be remembered as the turning point that defined how crypto is governed.
FAQs
What is the Ripple vs SEC lawsuit about?
The SEC sued Ripple in 2020 for allegedly offering XRP as an unregistered security. Ripple argues XRP is a currency, not a security.
What does the joint motion mean?
It signals that both parties are working toward a final settlement and have asked the court to pause the appeal for 60 days.
How has this affected XRP’s price?
XRP surged above $2 following the motion, reflecting investor optimism about the lawsuit potentially ending soon.
What happens next?
The SEC commissioners will review and vote on the proposed settlement. A status update is due by June 9, 2025.
Glossary of Key Terms
SEC: The U.S. Securities and Exchange Commission, regulator of securities markets.
XRP: Ripple’s digital currency used for fast, cross-border payments.
Settlement: A legal agreement that ends a dispute without further court action.
Injunction: A court order restricting certain actions, often part of enforcement cases.
Programmatic Sales: Ongoing, public sales of crypto assets, often through exchanges.
Sources
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