Ripple and SEC Enter 60-Day Legal Hiatus to Explore Settlement Options

The U.S. Court of Appeals has granted a joint request by the Securities and Exchange Commission and Ripple Labs to halt appellate proceedings for the purpose of exploring a settlement.

The suspension, intended to facilitate meaningful settlement talks, comes with a deadline: both parties must deliver a joint report by mid-June. Whether it’s June 9 or 15 remains to be seen, but consensus suggests the clock is ticking toward a resolution.

It began in December 2020, when the SEC sued Ripple Labs for allegedly selling XRP tokens without proper registration—effectively branding them securities. The saga took a turn in August 2024, when a federal judge found Ripple partially liable and the SEC responded with a $125 million penalty demand. That decision, however, didn’t end the fight—both sides filed appeals, each hoping to shift the balance in their favor.

When Ripple CEO Brad Garlinghouse spoke in March 2025, he hinted that the SEC might be backing away from its appeal. Ripple’s top legal voice, Stuart Alderoty, followed up with a more concrete note: if talks succeed, the company hopes to unlock nearly $75 million it had set aside for potential regulatory penalties.

Widely regarded as a landmark case, the Ripple lawsuit carries significant implications for the legal framework surrounding cryptocurrencies in the United States. A ruling that treats XRP as a security for retail buyers would set a precedent threatening the viability of countless token issuances. Conversely, a favorable resolution or withdrawal of the SEC’s claims could usher in a new era of regulatory certainty for digital asset developers.

Check this out: U.S. SEC and Gemini Request 60-Day Pause in Lawsuit for Possible Resolution

As the Ripple-SEC case inches toward a potential resolution, the broader crypto community — from heavyweight investors to nimble startups — is paying close attention. A settlement could ease years of legal tension, but observers note that Ripple may still operate under tight regulatory constraints, particularly around how it launches tokens and promotes its ecosystem.

Will a Pro-Crypto SEC Chair Change the Game?

Paul Atkins officially took the helm at the SEC on April 9, 2025, following Senate approval. The guy owns stakes in blockchain players like Securitize and Pontoro — and he’s no stranger to crypto advocacy. His arrival might just be the push Ripple needs to finally close the chapter with regulators.

Read on: SEC to Host Roundtable on Crypto Regulation

Paul Atkins reassured lawmakers of his unbiased approach and dedication to investor safety during confirmation hearings. Still, his connections to blockchain startups have sparked debate over potential SEC bias in crypto regulation. The commission is set to vote on the Ripple settlement terms in the coming weeks — a pivotal moment for crypto oversight.