Ripple Labs and its XRP token have found themselves at the heart of one of the most notable legal disputes in the history of cryptocurrency.
The protracted conflict with the U.S. Securities and Exchange Commission (SEC), which kicked off in December 2020, has significantly influenced Ripple’s future and sparked wider discussions surrounding cryptocurrency regulation in the U.S. As Ripple and the SEC submitted a joint motion to pause their appeals, April 16 could signal a turning point for Ripple’s legal challenges.
The Ripple SEC lawsuit: is the end near?
The lawsuit originates from the SEC’s claims that Ripple sold XRP in violation of securities regulations. Ripple has consistently contended that XRP should be classified as a currency, thereby falling outside the SEC’s jurisdiction, making this case a critical benchmark for future digital asset regulation in the U.S.
In July 2023, Judge Analisa Torres ruled partially in favor of Ripple, determining that XRP sales on public exchanges did not breach securities laws, although institutional sales did. This mixed judgment led to appeals from both sides.
Recent legal filings point toward a potential resolution being on the horizon. On April 10, Ripple and the SEC jointly requested a pause on their appeals and expressed intentions to settle the matter, citing an “agreement in principle.”
Legal expert Fred Rispoli indicated that Ripple has a 90% chance of resolving the situation by April 16, whether through settlement or withdrawal of appeals. He shared on X:
“In the case of SEC v. Ripple, anticipate some development on or before next Wednesday, 4/16… Ripple cannot extend this and must either file it (10%) or there will be a notice of settlement/withdrawal (90%).”
What lies ahead for Ripple and the larger cryptocurrency sector?
The possible conclusion of the Ripple SEC lawsuit has significant repercussions for regulatory clarity in the U.S. A favorable settlement could set a crucial precedent for distinguishing between securities and currencies in the crypto space, potentially replacing the outdated 1946 Howey Test, which could encourage institutional investment in XRP and other digital assets.
Despite facing legal challenges, Ripple has continued to grow its ecosystem and bolster its market standing. In March 2025, Ripple acquired Hidden Road for $1.25 billion, positioning itself as a prominent multi-asset prime broker, showcasing its ambitions beyond mere blockchain payments.
Ripple’s collaborations with financial institutions are essential to its strategy. Its capability to enable swift and economical international transactions establishes XRP as a crucial component of global finance.
However, critics emphasize that Ripple needs to tackle issues related to centralization within its network, a long-standing concern associated with its pre-mined supply and control exercised by Ripple Labs. Prominent Bitcoin advocate, partner at Castle Island Ventures, and co-founder of Coinmetrics, Nic Carter, remarked:
“XRP isn’t a cryptocurrency; it’s not genuinely decentralized. It’s essentially a token on a database maintained by a single entity (with some [unconvincing] attempts at decentralization).”
Regardless, the resolution of Ripple’s case could significantly impact crypto regulation in the U.S., especially with the impending SEC Chair Paul Atkins, who is anticipated to be more supportive of digital assets and innovation. Ripple’s ability to achieve favorable settlement terms could also affect ongoing legal disputes involving other cryptocurrency firms.
XRP Market Data
As of 3:00 pm UTC on Apr. 12, 2025, XRP is ranked #4 by market cap, and its price has increased 7.06% over the last 24 hours. The market capitalization of XRP stands at $125.58 billion, with a 24-hour trading volume of $3.27 billion. Learn more about XRP ›
Crypto Market Summary
As of 3:00 pm UTC on Apr. 12, 2025, the overall crypto market is valued at $2.69 trillion, with a 24-hour volume of $74.57 billion. Bitcoin dominance is currently at 62.42%. Learn more about the crypto market ›