Ripple and SEC Move Closer to Settlement
Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have filed a motion to pause their legal battle for 60 days, signaling a potential resolution of their ongoing dispute.
This move comes after both parties agreed in principle to settle the case, pending SEC approval.
The motion, filed Thursday, proposes an “abeyance” period to conserve judicial resources and provide both sides time to negotiate a final resolution. The legal dispute dates back to late 2020 when the SEC sued Ripple for selling XRP tokens, claiming the sales violated federal securities laws.
At the heart of the case was the issue of whether XRP should be classified as a security. Ripple’s legal team has consistently argued that the token is not a security and, therefore, should not be subject to SEC regulations.
Key Development: Agreement-In-Principle
According to the filing, Ripple and the SEC have reached an agreement-in-principle to resolve the case, including the SEC’s appeal and Ripple’s cross-appeal. However, the agreement is still pending SEC approval. If accepted, the parties would seek a final ruling from the district court.
Impact of Changing Regulatory Landscape
The case has been one of the most high-profile legal battles in the cryptocurrency industry. However, the landscape shifted after U.S. President Donald Trump’s election, which led to a more crypto-friendly stance by the SEC. This change in leadership resulted in the SEC dropping lawsuits against various companies, including Coinbase and Kraken.
Ripple CEO Brad Garlinghouse confirmed last month that the SEC had dropped its appeal on a court ruling that favored Ripple, which stated that Ripple’s programmatic sales of XRP did not violate securities laws. Additionally, Ripple decided not to pursue its cross-appeal against the SEC.
Waiting for Final Approval
The filing indicates that the parties need additional time to gain final approval from the SEC before proceeding with the settlement. If the agreement is approved, a district court ruling would follow.
While the central question in the case was whether XRP qualifies as a security, the SEC’s current leadership is working to define which cryptocurrencies are not considered securities. Notably, the SEC recently ruled that memecoins are not classified as securities, though they may still face enforcement actions if involved in fraud.
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
