Ripple Labs and their digital asset XRP have been right in the thick of it, embroiled in one of the most watched legal fights the crypto world has ever seen.

This long-running saga with the U.S. Securities and Exchange Commission (SEC), kicking off back in December 2020, has been a defining chapter for Ripple and has sparked bigger conversations about how crypto is regulated in the States. Now, with Ripple and the SEC having jointly requested a pause on their appeals, could April 16th finally be the day Ripple’s legal headaches come to an end?

The Ripple SEC Lawsuit: Is the Finish Line in Sight?

So, what’s this Ripple SEC lawsuit all about? It boils down to the SEC claiming Ripple was selling XRP as an unregistered security. Ripple, however, has always maintained that XRP is more like a currency and not under the SEC’s regulatory umbrella. This case has become a crucial test to see how digital assets will be treated under U.S. law going forward.

Back in July 2023, Judge Analisa Torres delivered a split decision, ruling that XRP sales on public exchanges weren’t in breach of securities laws, but sales to institutions were. This mixed outcome led both sides to file appeals.

But recent developments hint that we might be nearing the end. Just this April 10th, Ripple and the SEC jointly requested a pause on their appeals to work out the details, mentioning an “agreement in principle” to settle!

Legal eagle Fred Rispoli suggests there’s a strong 90% chance of a resolution by April 16th, either through a settlement or by withdrawing the appeals. He even tweeted:

“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 Does This Mean for Ripple and the Crypto World?

A potential resolution in the Ripple SEC case could be a game-changer for regulatory clarity in the US. If it ends well for Ripple, it could set a precedent for how we differentiate between securities and currencies in crypto, maybe even move beyond the old-school 1946 Howey Test! This could really encourage big institutions to get involved with XRP and other digital assets.

Even with the legal cloud hanging over them, Ripple hasn’t stood still. They’ve kept building and growing. Just in March 2025, they snapped up Hidden Road for a cool $1.25 billion, turning themselves into a global prime broker for multiple assets – talk about aiming high beyond just blockchain payments!

Teaming up with banks and financial firms is still key to Ripple’s plan. Their knack for making fast, cheap international money transfers makes XRP a seriously useful tool in the global financial system.

Of course, some critics argue Ripple still needs to tackle concerns about centralization in their network. This is an old argument, linked to XRP being pre-mined and Ripple Labs having a lot of control. Even Nic Carter, a well-known Bitcoin fan, partner at Castle Island Ventures, and co-founder of Coinmetrics, chimed in with:

“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).”

Whatever happens, how the Ripple case wraps up could really change the game for crypto regulation in the US, particularly with Paul Atkins expected to take the helm as SEC Chair. He’s known to be more open to digital assets and innovation. Plus, if Ripple can negotiate good settlement terms, it could set the tone for other crypto companies facing similar legal battles.

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