Ripple VS SEC: How A 60 Day Pause Might Help Clarify XRP's Win
2025-04-17
The years-long courtroom clash between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has taken a new turn. In a surprising development, both parties have jointly filed a motion to pause the ongoing legal proceedings—and the court has agreed.
This marks a significant pause in the high-profile lawsuit that began in late 2020 and has since influenced how crypto assets are regulated in the United States.
Ripple vs. SEC — How It All Started
The legal conflict began in December 2020, when the SEC filed a lawsuit against Ripple Labs. The commission alleged that Ripple had raised $1.3 billion through the sale of XRP tokens without registering them as securities, violating federal law.
The case quickly became a focal point for the crypto industry, sparking debates about whether cryptocurrencies should be classified as securities or commodities.
Fast forward to July 2023, U.S. District Judge Analisa Torres issued a split ruling. She concluded that Ripple did indeed break securities laws when selling XRP directly to institutional investors.
However, she clarified that XRP sales on secondary public exchanges did not fall under securities violations—a partial win for Ripple and the broader crypto community.
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Ripple to Pay $50 Million in Penalties
A major breakthrough came on March 25, 2025, when Ripple and the SEC reached a partial settlement. Under the agreement, Ripple will pay $50 million of the originally proposed $125 million penalty. The remaining $75 million will be refunded from an escrow account, effectively reducing Ripple's financial burden and signaling a willingness from both sides to de-escalate.
This development appears to have prompted both parties to re-evaluate their next steps, leading to a joint motion filed on April 10 to hold all appeals and cross-appeals in abeyance (legal pause). The court granted the motion and ordered the SEC to provide a status update within 60 days, leaving the door open for future developments.
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Appeals and Executive Claims Also on Hold
The motion to pause includes not only the SEC’s main appeal and Ripple’s cross-appeal but also covers the regulator’s claims against Ripple executives Brad Garlinghouse and Chris Larsen.
These individual charges had been a point of contention, and the current pause suggests both sides may be working behind the scenes to reach a broader resolution or reassess legal strategies in light of the settlement.
Political Influence and XRP Donations
The case has also become politically charged. Ripple’s Chief Legal Officer Stuart Alderoty reportedly donated $300,000 in XRP to Donald Trump’s 2024 presidential campaign.
Additionally, Ripple Labs donated $5 million in XRP to Trump’s inaugural committee after his election victory in January 2025. These contributions have sparked debate over the influence of political affiliations in shaping regulatory outcomes.
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XRP (XRP), Market Cap, Price Today & Chart History
XRP Price Update Amid Legal Pause
Despite the pause in legal proceedings, the price of XRP saw a slight dip. As of the latest data, XRP/USDT is trading at $2.07, down 2.4% over the past 24 hours.
Market sentiment remains cautious as investors await further updates from the court and potential final resolutions.
Conclusion
The Ripple-SEC saga may not be fully over, but the recent developments suggest a turning point. With a partial settlement in place and appeals paused, both parties appear to be reconsidering their positions.
The next 60 days will be crucial, as the SEC is expected to report back to the court on how it plans to proceed. For now, Ripple has gained breathing room, and the crypto industry watches closely for what comes next.
FAQ
1. What is the Ripple vs. SEC lawsuit about?
The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs in December 2020, alleging that Ripple's sale of XRP tokens constituted an unregistered securities offering, raising over $1.3 billion.
2. What was the outcome of the July 2023 court ruling?
Judge Analisa Torres ruled that Ripple's institutional sales of XRP violated securities laws, but sales on public exchanges did not. This partial victory clarified that XRP itself is not a security, though certain sales practices were deemed unlawful.
3. Has there been a settlement between Ripple and the SEC?
Yes. In March 2025, Ripple agreed to pay $50 million of the initially proposed $125 million penalty, with the remaining amount refunded from escrow. This settlement led both parties to request a pause in ongoing appeals.
4. Why did the court grant a 60-day pause in the case?
The pause allows both Ripple and the SEC to consider the implications of their partial settlement and potentially negotiate further resolutions. The SEC is required to provide a status update within this period.
5. How has this legal battle affected XRP's price?
Following the announcement of the case's pause and partial settlement, XRP's price experienced fluctuations. At the time of the latest reports, XRP was trading at $2.07, reflecting a 2.4% decrease over the previous 24 hours.
Disclaimer: The content of this article does not constitute financial or investment advice.
