Key Takeaways:
- Ripple and the SEC have jointly requested a 60-day pause in their ongoing legal appeals.
- The pause suggests both parties are exploring a possible settlement after years of litigation.
- Market response has been cautiously optimistic, with XRP and similar tokens seeing slight gains.
A Collective Action That Marks a Shift
On April 10, 2025, Ripple Labs and the United States Securities and Exchange Commission (SEC) jointly petitioned for an automatic stay of all proceedings on appeal for a period of 60 days. This dramatic turn of events has given renewed hope in the cryptocurrency world that the dispute is set to end with a possible settlement in one of the industry’s most noted lawsuits.
Both parties reported to the court that they are negotiating towards a settlement in the final stages. They spoke about the need for internal procedures to unfold—particularly on the SEC side, where official approval by agency commissioners could be necessary prior to any settlement being agreed on.
A Legal Dispute Dating Back to 2020
The legal fight between Ripple and the SEC began in December 2020, when the SEC sued Ripple for illegally selling XRP as unregistered securities. The case quickly became symbolic of the general regulatory uncertainty surrounding cryptocurrencies in the United States.
In July 2023, a partial summary judgment provided some relief. The court ruled that:
- Sales of XRP on exchanges to retail investors were not securities transactions.
- But direct institutional sales were discovered to have violated securities laws.
Cross Appeals Made It More Complicated
Following the ruling, the SEC appealed on the retail investor side, attempting to reverse the finding that XRP was not a security in secondary market sales. Meanwhile, Ripple appealed the ruling on institutional sales, with both sides appealing half of the same case.
This two-tailed call extended the duration for litigation and contributed to legal costs for both parties. More significantly, it hung over Ripple’s U.S. operations and made the regulatory environment for the broader crypto universe more complex.
Why Now? Timing and Politics Play a Role
Several reasons why this is a favorable time for both parties to negotiate a resolution exist. A change in leadership at the SEC is one of them. The current administration has signaled that it is softening its stance on crypto, and there may be an opportunity for negotiation.
Market Reaction Is Cautious Optimism
News of the 60-day delay immediately impacted XRP and other similar tokens:
- XRP saw a minor price increase, trading at around $0.63 shortly after the news emerged.
- Volumes on trades went up, registering fresh enthusiasm from both retail and institutional traders.
- Other such tokens, such as XLM and ADA, which have found mention alongside XRP in court arguments, also went up.
What a Settlement Could Mean
Should a settlement be reached, the implications would be far-reaching beyond Ripple itself. A settlement may in fact rewrite the manner in which the SEC approaches crypto enforcement going forward.
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