Ripple,SEC Place Appeal in Abeyance,90% Likely Settlement

Attorney Fred Rispoli recently addressed the upcoming legal developments for Ripple, particularly focusing on the April 16 deadline for filing an appellate brief. According to Rispoli, Ripple has three potential actions: filing the appellate brief, submitting a notice of settlement, or withdrawing the case. He assessed that the likelihood of filing the brief is low, estimating a ten percent chance, while placing a ninety percent likelihood on some form of settlement or withdrawal.

Rispoli clarified the legal process, noting that the case involves two separate jurisdictions: the Southern District of New York under Judge Analisa Torres and the Second Circuit Court of Appeals. He emphasized that no changes, including modifications to the injunctive order issued by Judge Torres, can be made at the district court level until the appellate process is resolved. This resolution could come through settlement or formal withdrawal of the appeal, effectively pausing procedural activity in the lower court until the appellate court’s involvement concludes.

Retired securities lawyer Marc Fagel responded to Rispoli’s update, suggesting that a joint motion filed earlier might signal a settlement agreement in principle. Fagel proposed that such an agreement could involve returning to Judge Torres to amend the injunction before officially dismissing the appeals. This interpretation indicates that the parties may attempt to coordinate the sequencing of both jurisdictions to resolve the remaining issues.

Rispoli acknowledged the logic of Fagel’s interpretation but admitted some uncertainty regarding the steps required to restore jurisdiction to the district court. He stated that a return to Judge Torres is certain, but whether doing so would require withdrawing the appeals is unclear. He described that move as somewhat risky, given the need to ensure jurisdiction is properly reestablished without disrupting the legal process.

According to a recent article, Ripple and the SEC filed a joint motion to place the ongoing appeal in abeyance, indicating that both parties have reached a settlement agreement pending final approval from the SEC Commission. This development means no further legal briefs will be filed on April 16, signaling that behind-the-scenes negotiations between Ripple and the SEC have yielded substantial progress. While the settlement agreement has not yet been publicly disclosed, the cooperative move is being hailed as a significant shift in a legal battle that has spanned over three years. It marks the closest point to full resolution since the SEC first filed suit against Ripple Labs in December 2020, accusing the company of conducting an unregistered securities offering through the sale of XRP.

Rispoli’s remarks underscored the complexity in resolving legal matters spread across multiple jurisdictions. He maintained that no movement can occur in Judge Torres’s courtroom until the appellate court matter is settled or withdrawn. With Ripple and the SEC filing a joint motion to place the appeal in abeyance, a settlement is likely to happen once the commission gives final approval.