Ripple-SEC settlement nears $50 million as XRP ETF talks emerge

A federal court has paused the SEC's lawsuit against Ripple Labs as both parties advance toward a potential $50 million settlement, according to court documents filed in New York.

The U.S. Court of Appeals for the Second Circuit granted a joint motion to halt proceedings, requiring the SEC to submit a status update within 60 days.

The pause follows negotiations to resolve appeals related to Ripple’s (CRYPTO:XRP) alleged sale of unregistered securities through its XRP token.

Ripple would pay $50 million under the proposed terms, which is a substantial amount less than the first fines that regulators had demanded.

CEO Brad Garlinghouse indicated the company is exploring paying the fine in XRP and expressed optimism about SEC approval for spot XRP ETFs.

“The parties jointly move to hold this appeal in abeyance,” stated the court order, which applies to case numbers 24-2648(L) and 24-2705(XAP).

The agreement aims to conserve resources while awaiting final approval from the SEC and district court.

The settlement could mark a turning point for XRP, which has faced regulatory uncertainty since the SEC’s 2020 lawsuit.

Supporters argue the case exemplifies regulatory overreach, while the SEC maintains its actions are necessary to protect investors in the evolving crypto market.

Garlinghouse’s ETF comments signal Ripple’s broader strategy to integrate XRP into mainstream finance, though the SEC has not publicly commented on such plans.

Legal experts note the settlement’s outcome may influence how regulators approach other digital assets, particularly those with decentralised governance models.

The court’s decision leaves unresolved broader questions about the SEC’s jurisdiction over cryptocurrencies.

Critics claim the agency’s enforcement-focused approach stifles innovation, while regulators emphasise the need for clear rules as crypto adoption grows.

Market analysts suggest a finalised deal could stabilise XRP’s valuation, which has fluctuated amid the legal battle.

However, lingering regulatory risks and the SEC’s pending decisions on crypto ETFs remain key factors for investors.

At the time of reporting, the XRP (XRP) price was $2.10.