Ripple,SEC Pause Appeals,90% Chance of Settlement by April 16

Ripple Labs and its XRP token have been embroiled in a protracted legal battle with the U.S. Securities and Exchange Commission (SEC) since December 2020. This dispute has significantly influenced Ripple’s trajectory and raised critical questions about the regulation of cryptocurrencies in the U.S. The recent joint motion by Ripple and the SEC to pause their appeals suggests that a resolution to this high-stakes legal battle may be imminent.

The core of the Ripple SEC lawsuit revolves around the SEC’s allegation that Ripple sold XRP as an unregistered security. Ripple has consistently maintained that XRP is a currency and thus falls outside the SEC’s jurisdiction. This case has become a pivotal moment for determining how digital assets will be regulated in the U.S. In July 2023, Judge Analisa Torres issued a mixed ruling, stating that while XRP sales on public exchanges did not violate securities laws, institutional sales did. This decision led to appeals from both parties, further complicating the legal landscape.

Recent developments indicate that a resolution may be on the horizon. On April 10, Ripple and the SEC jointly filed a motion to pause their appeals and prepare their terms, citing an “agreement in principle” to settle the case. Legal expert Fred Rispoli has predicted that there is a 90% chance of a resolution by April 16, either through a settlement or the withdrawal of appeals. Rispoli posted on X, stating, “On SEC v. Ripple, expect to see something happen on or before next Wednesday, 4/16… Ripple cannot get an extension and either has to file it (10%) or there will be a notice of settlement/withdrawal (90%).”

The potential resolution of the Ripple SEC lawsuit carries significant implications for regulatory clarity in the U.S. If settled favorably, it could set a precedent for distinguishing between securities and currencies in the crypto markets, potentially replacing the outdated 1946 Howey Test. This could encourage institutional participation in XRP and other digital assets. Despite its legal challenges, Ripple has continued to expand its ecosystem and strengthen its market position. In March 2025, Ripple acquired Hidden Road for $1.25 billion, positioning itself as a global multi-asset prime broker. This move underscores Ripple’s ambitions beyond blockchain payments.

Ripple’s partnerships with financial institutions remain a cornerstone of its strategy. Its ability to facilitate fast and cost-effective international transactions positions XRP as a valuable tool in global finance. However, critics argue that Ripple must address concerns about centralization within its network, a longstanding issue tied to its pre-mined supply and control by Ripple Labs. Nic Carter, a vocal Bitcoin advocate and partner at Castle Island Ventures, commented, “XRP isn’t a cryptocurrency, it’s not meaningfully decentralized, it’s literally a token on a DB maintained by a single entity (+ some [unconvincing] decentralization theater).”

Regardless of the outcome, the resolution of Ripple’s case could reshape crypto regulation in the U.S., especially under incoming SEC Chair Paul Atkins, who is expected to be more favorable toward digital assets and innovation. Ripple’s ability to negotiate favorable settlement terms could also influence ongoing legal disputes involving other crypto firms. The end of this legal battle could mark a new chapter for Ripple and the broader crypto industry, providing much-needed regulatory clarity and potentially paving the way for greater institutional involvement in digital assets.