Key Takeaways
- Ripple and the SEC have filed a joint motion asking the court to pause their ongoing appeals so they can pursue a settlement agreement.
- The latest decision to pause the appeal entails that “no brief will be filed on April 16” and suspends proceedings as the parties finalize the settlement terms on the XRP case.
- The joint motion aims to conserve resources by suspending the legal proceedings while they await Commission approval.
Reached an Agreement-In-Principle
After years of waiting, the long-standing legal battle between Ripple Labs and the US Securities and Exchange Commission (SEC) could finally be coming to an end after both sides filed a joint motion to hold the ongoing appeal and cross-appeal in abeyance. The pause of appeals points to a potential settlement pending approval by the SEC.
According to court filings submitted on April 10, 2025, to the US Court of Appeals for the Second Circuit, Ripple and SEC had “reached an agreement-in-principle, subject to Commission approval, to resolve the underlying case.” The agreement involves the SEC’s appeal, Ripple’s cross-appeal, and claims involving Ripple CEO Brad Garlinghouse and Chris Larsen. The joint filing stated:
“An abeyance would conserve judicial and party resources while the parties continue to pursue a negotiated resolution of this matter.”
Pursue an Indicative Ruling
It will be remembered that Ripple Labs CEO Brad Garlinghouse had on March 19 proposed the end of the Ripple Vs. SEC case, with most people speculating that the regulator was ready to settle as soon as Trump’s nominee for SEC Chair, Paul Atkins, was approved to take office. According to the notice, the stay aims to conserve judicial and party resources as the commission looks over the proposed settlement terms. Should the proposal be approved, the SEC will be free to go ahead and pursue an indicative ruling from the district court, with a status expected to be filed within 60 days of the court’s stay order.
In the long-drawn case, SEC initially filed a notice of appeal on October 3, 2024, after the district court gave its final verdict, with Ripple Labs filing a cross-appeal about a week later. The federal agency went on to submit an opening brief in January 2025, after which the court scheduled an April 16 deadline for Ripple and its executives to respond. The latest development now means that events have overtaken the deadline. According to a tweet by attorney James K. Filan, who has closely followed the case:
“The parties have filed a joint motion to hold the appeal in abeyance based on the parties’ agreement to settle. The settlement is awaiting Commission approval. No brief will be filed on April 16.”
The settlement will Have a Serious Impact.
The SEC filed a suit against XRP Labs in December 2020, claiming that the firm’s XRP token offering can actually be an unregistered security. As a result, the agency wanted the company penalized for the offense. Whatever settlement is reached will have profound implications for Ripple and the entire crypto regulatory landscape since the case is regarded as high-profile within the digital asset community in the United States and beyond. A user suggested in a reply to Filan’s thread on X:
“SEC is ready to settle but is waiting for Atkins to take the helm as the new SEC chief so he can start with dropping the biggest case of their career and start with a huge win.”
Conclusion
The impact of the filing of the joint motion by Ripple and SEC didn’t impress on the price of XRP, with onchain data showing that the token’s price dropped slightly from $2.022 to $1.93 within the past 24 hours. While the price bounced back to $2 by the time of writing, indicating a 0.65% increase over the past 24 hours, the trade volume dropped significantly by 51% to $4.07 billion.
Frequently Asked Questions (FAQs)
Why did the SEC sue Ripple?
In December 2020, the SEC accused Ripple of selling XRP, which the SEC said was an unregistered security. The payment company refuted the claims.
Has XRP won the SEC case?
The long legal battle between Ripple and the SEC could now be over. With the agency and the company filing a joint motion on the remaining charges against Ripple executives, XRP holders could soon be drinking champagne.
Will XRP go up if the final settlement in the lawsuit goes in their favor?
Ripple’s legal victory could strengthen its standing in the market, allowing it to focus on business expansion rather than legal battles.
