Ripple,SEC Pause Appeals,Seek Settlement Over XRP Dispute

Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have jointly requested a pause in their respective appeals to finalize a potential settlement, as indicated by a motion filed on Thursday. This filing suggests a possible resolution to a long-standing dispute that has been a central point of contention in the payments industry since December 2020. The dispute revolves around the sale of XRP tokens, which the SEC alleged were unregistered securities.

The case has been pivotal in the ongoing debate over the regulatory status of cryptocurrencies in the United States. Ripple has consistently argued that XRP is a currency and not a security, thereby falling outside the SEC’s jurisdiction. The joint motion to pause the appeals process indicates that both parties have reached an “agreement in principle” to resolve all outstanding issues. This includes not only the SEC’s appeal of the district court’s final judgment but also Ripple’s cross-appeal and the claims against Ripple founders Brad Garlinghouse and Chris Larsen.

The motion requests that the court hold the appeals process in abeyance, effectively pausing it, while the parties finalize the terms of the settlement. This settlement still requires formal approval from the SEC’s commissioners. The pause in the appeals process eliminates the requirement for the parties to submit briefs by the previously scheduled April 16 deadline, suggesting that a settlement may be imminent.

This development follows a similar request from the SEC and Gemini in early April, where the two parties requested a two-month pause to finalize a deal to close their long-running legal dispute over Gemini's Earn program. The joint motion by Ripple and the SEC signals a potential end to the high-profile case, which has been ongoing since December 2020. The court document also states that Ripple must submit a status report within 60 days if the settlement does not get approved.

With the lawsuit nearing an end, Ripple is shifting its focus toward business expansion. On April 9, 2025, Ripple Labs acquired Hidden Road, a financial prime brokerage firm, in a $1.25 billion deal. This move is seen as an effort to strengthen Ripple’s position in the mainstream financial space. The broader Ripple ecosystem is also pushing for an XRP exchange-traded fund. Most asset managers, including Grayscale Investments, filed in January 2025 to convert its XRP Trust into a full-fledged spot ETF. Since then, the firm’s XRP ETF has been added to the SEC’s review list, placing it as the first fund to reach that stage. There is also speculation that investment giant BlackRock might join the XRP ETF push in the U.S.

The joint motion to pause appeals may expedite a resolution, potentially setting a precedent for future crypto-related legal disputes. This development has boosted optimism for XRP-spot ETF approval and Ripple's U.S. business expansion. The appeal withdrawal may hinge on Judge Torres vacating XRP. The broader implications of this settlement could have a significant impact on the cryptocurrency industry, as it may provide clarity on the regulatory status of digital assets.