Ripple vs. SEC: 60-Day Pause Sparks Settlement Rumors and Major XRP Speculation
The long-running legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has taken a dramatic turn. A 60-day pause in the Ripple-SEC case, approved by the U.S. Court of Appeals, has triggered a wave of speculation throughout the crypto community. Could Ripple and the SEC be moving toward a settlement? And what does this mean for XRP and the broader crypto industry?
What’s Behind the Pause?
Crypto lawyer James Farrell believes this pause might indicate major behind-the-scenes developments. The fact that both Ripple and the SEC jointly requested the delay is raising eyebrows. It’s rare for two opposing parties to align on such a decision unless they’re negotiating.
According to Farrell, the pause could be tied to two key possibilities:
- A potential settlement between Ripple and the SEC
- An indicative ruling by Judge Analisa Torres related to Ripple's ability to conduct private token sales.
Ripple is reportedly seeking judicial clarity that would allow it to sell XRP privately under specific conditions. At present, this is restricted due to past SEC enforcement. Without a green light, Ripple’s ambitions, such as going public, could be significantly delayed, especially while other crypto firms are gearing up for IPOs.
Ripple’s Legal Roadmap: Two Possible Outcomes
Farrell outlines two likely scenarios that could determine XRP’s future and Ripple’s standing in the U.S. crypto landscape:
1. Partial Agreement: Settlement Without Rule Change.
Ripple and the SEC may reach a basic settlement, but the SEC could refuse Ripple’s request for rule adjustments on private token sales. In this scenario, Ripple would still need to seek Judge Torres’ approval separately, a process that could take 3 to 6 months or more, and there's no guarantee of success.
2. Comprehensive Agreement: Settlement Plus Rule Change.
In the more optimistic outcome, the SEC agrees not only to a settlement but also supports Ripple’s push for rule adjustments. The case would then move back to Judge Torres for review. Still, court procedures could delay final outcomes for several months.
When Will the Ripple-SEC Case End?
If a full agreement is reached soon, the ongoing appeal could be dismissed as early as next month, delivering a huge win for Ripple and XRP holders. However, if negotiations stall or Ripple must pursue rule changes separately, this legal saga might stretch into late 2026 or even 2027, depending on how the appeals process unfolds.
What's Next for XRP and Crypto Regulation?
The SEC’s next move is expected by June 15, and it could be a turning point. Until then, the legal and crypto communities are holding their breath. Investors, developers, and regulators are watching closely as the Ripple-SEC outcome could shape the future of U.S. crypto regulations.
For now, XRP’s path remains uncertain, but the next few months could define whether Ripple emerges victorious or remains locked in a regulatory standoff.
