Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have jointly requested a pause in their ongoing legal battle over XRP. The joint motion suggests that a full settlement may be imminent, paving the way for a resolution of this complex case. This move follows an agreement-in-principle reached by both parties, with the SEC’s appeal and Ripple’s cross-appeal now being held on hold until approval is given. The SEC will update the court within 60 days following this approval. The legal dispute between Ripple Labs (the company) and the SEC began in 2020 when the SEC accused Ripple of selling XRP as an unregistered security. This sparked a major legal battle that garnered significant attention in the crypto industry. A landmark ruling in 2023 determined that Ripple’s institutional sales did not violate securities laws, but the SEC contends that those sales on public exchanges were unlawful. While both sides previously hinted at a potential settlement last month, this motion to hold the appeal in abeyance was only recently submitted. The delay is currently unexplained, and it has effectively halted all legal activity while the settlement is finalized. Ripple has agreed to pay a reduced civil fine of around $50 million, significantly lower than the original $125 million proposal, should it be approved. This potential agreement could significantly impact how digital assets are regulated in the future and shape the approach toward cryptocurrencies under U.S. law. The announcement comes shortly before Paul Atkins takes office as SEC chair on April 9th. A renowned figure for his balanced stance on digital assets, Atkins is expected to help establish a clearer regulatory framework for the crypto industry.