Ripple and the SEC hit pause on their legal brawl. The surprise move points to a blockbuster settlement that could rewrite the rules of crypto regulation.
Ripple (XRP-USD) and the U.S. Securities and Exchange Commission have done the unthinkable. After nearly five years of legal punches, the two sides have filed a joint motion to hit pause on their appeals. The abrupt detour marks a potential finale to one of crypto’s most dramatic public spectacles.
Ripple and SEC Push to Pause Appeals Process
According to a court filing on Thursday, Ripple and the SEC have both agreed to pause their legal appeals. The reason? They’re finalizing a settlement deal. Attorney James Filan posted that the agreement in principle covers not only the SEC’s appeal of last year’s district court ruling but also Ripple’s own cross-appeal and the personal claims against founders Brad Garlinghouse and Chris Larsen.
The motion asks the court to hold the case “in abeyance”—legal speak for putting everything on ice—while the parties iron out final terms. The deal still needs formal sign-off from the SEC’s five commissioners before it becomes official.
Settlement Would End Years of Regulatory Tension
This case has been the cornerstone of U.S. crypto regulation debates since late 2020, when the SEC alleged Ripple sold unregistered securities via its XRP token. Ripple has pushed back the entire way, insisting XRP is a currency, not a security, and therefore outside the SEC’s jurisdiction.
The legal battle has rippled—pun intended—through the industry, with many seeing it as a test case for how regulators treat crypto in the U.S. According to the filing, the proposed resolution would shut down not only the current appeals but also wrap up outstanding claims against Ripple’s leadership.
Deal Mirrors Gemini-SEC Peace Talks
This move echoes a similar motion filed by Gemini and the SEC earlier this month. That case, tied to Gemini’s Earn product, also saw both parties ask the court for extra time to finalize a deal.
It’s hard to tell if this signals a broader regulatory shift under current SEC leadership—but the tone feels less hostile than in past years. If the Ripple deal is approved, it won’t just be a legal victory. It could finally bring XRP out of the regulatory gray zone.
Still, broader crypto sentiment remains fragile as Trump’s tariffs continue to rattle investor confidence. XRP is feeling the pressure too. At the time of writing, XRP is trading at $2.00. It is struggling to break past stiff resistance at $2.20. XRP has failed multiple attempts to reclaim that level, which now stands as a key technical and psychological hurdle for any near-term recovery.
