New Twist in Ripple Lawsuit: Court Halts Appeal

• U.S. Court halts Ripple appeal, grants 60-day pause for settlement talks.

• Ripple and SEC request appeal delay, signaling possible settlement.

The ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has taken a new turn. While the lawsuit seemed to be nearing its end, formal steps are still required. On April 16, 2025, the U.S. Court of Appeals for the Second Circuit approved a joint request that both stopped the appeal process and placed the whole case under “abeyance.” A 60-day pause status allows time for the SEC to submit its status report no later than June 15.

Court Halts Ripple-SEC Appeal, Signaling Potential Settlement

The legal dispute between Ripple and the SEC reaches a crucial phase through this temporary court halt. The legal dispute between the SEC and Ripple and its executives started in December 2020 because the SEC claimed fraudulent XRP token transactions violated security laws. Ripple and the entire cryptocurrency industry experienced extensive effects since the start of their legal battle with the SEC.

The SEC and Ripple made a joint appeal delay motion, indicating potential settlement activities between the companies. James Filan published the motion through X (formerly Twitter) on April 10, indicating that both parties aim to find a settlement solution. The legal tensions between the parties are moving towards resolution because of the decision to stop the appeal process.

Ripple CEO Brad Garlinghouse made public on March 19 that the SEC would abandon its appeal, which generated new momentum in the resolution process. Both Ripple and the SEC plan to withdraw their ongoing appeal to the court after the company projects a $75 million reimbursement. The details of the settlement agreement are still uncertain, while many important aspects need completion.

An unusual development occurred during the process when Mark Uyeda briefly took over as SEC chairman. During his leadership at the SEC, Mark Uyeda allowed the agency to withdraw from multiple legal cases, which included the lawsuit against Ripple. Early in April Paul Atkins received the appointment to serve as the new SEC chairman. His past support for the crypto industry makes Atkins a promising choice for Ripple as the new SEC chairman.

XRP Advocate Sees Appeal Withdrawal as Win for XRP

XRP advocate John Deaton expressed optimism about the situation. He noted that the decision to drop the appeal could be seen as a sign that XRP is not considered a security. This case created significant implications regarding regulatory policies for cryptocurrencies because of its outcome. The final settlement on XRP status may establish crucial guidelines which other cryptocurrency projects can reference when facing comparable legal issues.

The current price of XRP stands at $2.06, while the CoinMarketCap data shows that its market capitalization reaches $120.61 billion. The case outcome between Ripple and the SEC directly affects XRP cryptocurrency market value since investors have been waiting for the definitive settlement.

Ripple made a critical decision to settle the legal dispute which moves the dispute resolution process towards final resolution. The settlement terms require Ripple to pay $50 million from the total $125 million settlement as specified originally. The leading court battle by this company includes an injunction and its request full removal has become another significant development in this legal dispute. After the SEC finishes its voting process through its member court documents the case will officially come to a complete end.

Lastly, Ripple continues settlement discussions despite ongoing proceedings because its decision to settle points toward an impending resolution. A lasting uncertainty exists because the formalities to finalize the case have not been completed. The evolving cryptocurrency regulatory framework will adapt to the settlement outcomes of the present judicial process.