In a significant development in the years-long legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), Ripple has submitted a formal letter supporting a potential settlement. This fresh filing suggests that both parties are looking for a way to bring the high-profile XRP lawsuit to a close without further legal escalation.

The letter, submitted to Judge Analisa Torres in the Southern District of New York, was filed in support of a joint motion asking the court for what’s known as an “indicative ruling.” This type of ruling would allow the court to give its view on the proposed settlement while the case remains under appeal. Both Ripple and the SEC have requested that the U.S. Court of Appeals for the Second Circuit continue to pause the appeal process while they work toward a resolution.

No Changes to Key Legal Rulings

In its letter, Ripple made it clear that it is not seeking to overturn or modify the court’s previous Summary Judgment decision — a ruling that had partially favored the company by declaring that XRP sales to retail buyers did not constitute securities transactions. That decision is still considered a crucial legal precedent for future crypto-related cases.

Ripple also emphasized that removing an earlier proposed injunction — which would have required the company to “obey the law” — does not weaken its legal obligations. The company pointed out that such an order is unnecessary because every business is already expected to follow the law by default. Ripple stated plainly that it understands its responsibility to comply with U.S. securities regulations and is committed to doing so, with or without a court order.

A Push for Practical Resolution

Ripple’s latest legal move signals a strong preference for ending the case through a negotiated agreement. The company argued that settling now would be beneficial for both sides. It would spare the court system the burden of additional hearings and appeals, while also providing Ripple and the broader crypto industry with much-needed clarity.

Importantly, Ripple noted that any final agreement would still hold the company accountable — possibly through financial penalties — but without the extended delays and risks associated with ongoing litigation. A reduced penalty and removal of unnecessary court orders appear to be among the compromises being discussed.

SEC Shows Signs of Evolving

Adding weight to Ripple’s argument, the company pointed to what it sees as a shift in the SEC’s stance toward digital assets. The agency has recently dropped several enforcement actions against crypto firms and introduced a new Crypto Task Force dedicated to building clearer, fairer regulatory frameworks for digital assets.

Ripple has been actively involved in this evolving regulatory dialogue. The company has attended meetings, offered policy recommendations, and voiced support for more transparent, collaborative rulemaking. It views the creation of the Crypto Task Force as a sign that the SEC is becoming more open to industry input — a sharp contrast to the enforcement-heavy approach it took in previous years.

A Pivotal Moment for XRP and the Industry

The Ripple vs. SEC case has become a landmark legal battle in the cryptocurrency world. Filed in December 2020, the lawsuit accused Ripple of conducting unregistered securities sales through its XRP token, a charge Ripple has long denied. Over time, the case has taken on broader significance, serving as a legal test for how digital assets are defined and regulated in the U.S.

Now, as the industry looks for legal clarity and regulatory certainty, a settlement between Ripple and the SEC could mark a turning point. If accepted by the court, the agreement would not only end years of legal uncertainty for Ripple, but also signal a more cooperative phase in the SEC’s approach to digital asset oversight.

What Comes Next?

The SEC has been ordered to provide a status update on the case by August 15, 2025. If the court offers a favorable indicative ruling and the appeal remains paused, a formal settlement could follow soon after.

For now, all eyes are on Judge Torres and the SEC’s next move. If both sides succeed in reaching common ground, it could pave the way for a new chapter in crypto regulation — one that balances accountability with innovation.