Ripple Labs and its XRP token have been at the center of one of the most high-profile legal battles in crypto history.

The lengthy dispute with the U.S. Securities and Exchange Commission (SEC), which began in December 2020, has shaped Ripple’s trajectory and raised broader questions about crypto regulation in the U.S. As Ripple and the SEC filed for a joint motion to pause their appeals, April 16 could finally mark an end to Ripple’s litigation woes.

The Ripple SEC lawsuit: the end in sight

The Ripple SEC lawsuit stems from the SEC’s allegations that Ripple sold XRP as an unregistered security. While Ripple has consistently argued that XRP is a currency and falls outside the SEC’s jurisdiction, the case has become a litmus test for how digital assets will be regulated in the U.S.

In July 2023, Judge Analisa Torres ruled partially in Ripple’s favor, stating that XRP sales on public exchanges did not violate securities laws but institutional sales did. This mixed ruling led to appeals from both parties.

Recent filings suggest that a resolution may be imminent. On April 10, Ripple and the SEC jointly filed a motion to pause their appeals and prepare their terms, citing an “agreement in principle” to settle the case.

Legal expert Fred Rispoli stated that Ripple has a 90% chance of resolution by April 16, either through settlement or withdrawal of appeals. He posted on X:

“On SEC v. Ripple, expect to see something happen on or before next Wednesday, 4/16… Ripple cannot get an extension and either has to file it (10%) or there will be a notice of settlement/withdrawal (90%).”

What’s next for Ripple and the broader crypto industry?

The potential resolution of the Ripple SEC lawsuit holds significant implications for regulatory clarity in the U.S. If settled favorably, it could establish a precedent for distinguishing between securities and currencies in crypto markets, potentially replacing the outdated 1946 Howey Test, and encouraging institutional participation in XRP and other digital assets.

Despite its legal hurdles, Ripple has continued to expand its ecosystem and strengthen its market position. In March 2025, Ripple acquired Hidden Road for $1.25 billion, positioning itself as a global multi-asset prime broker, a move demonstrating its ambitions beyond blockchain payments.

Ripple’s partnerships with financial institutions remain central to its strategy. Its ability to facilitate fast and cost-effective international transactions positions XRP as a valuable tool in global finance.

Critics argue that Ripple must address concerns about centralization within its network a longstanding issue tied to its pre-mined supply and control by Ripple Labs. Vocal Bitcoin advocate, partner at Castle Island Ventures, and cofounder of Coinmetrics, Nic Carter, even commented:

“XRP isn’t a cryptocurrency, it’s not meaningfully decentralized, it’s literally a token on a DB maintained by a single entity (+ some [unconvincing] decentralization theater).”

In any case, the resolution of Ripple’s case could reshape crypto regulation in the U.S., especially under incoming SEC Chair Paul Atkins, who is expected to be more favorable toward digital assets and innovation. Ripple’s ability to negotiate favorable settlement terms could also influence ongoing legal disputes involving other crypto firms.

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