SEC,Ripple Pause Appeals,Seek Settlement

The US Securities and Exchange Commission (SEC) and Ripple Labs have taken a significant step towards resolving their long-standing legal dispute. On Thursday, both parties submitted a joint motion to the Court of Appeals, requesting a pause on their ongoing appeals. This move comes after an agreement-in-principle was reached to settle their differences.

The legal battle between the SEC and Ripple began in October 2024, when the SEC appealed a ruling by Judge Analisa Torres. The ruling in question challenged the SEC's stance that XRP sales to retail investors constituted securities. In response, Ripple decided to cross-appeal, further complicating the legal landscape.

The joint motion filed by both parties seeks to temporarily halt both the SEC’s appeal and Ripple’s cross-appeal. This pause is intended to allow the parties to finalize their settlement agreement. Ripple has already announced that the SEC has agreed to drop its appeal, but this decision still requires internal approval from the SEC before it can be publicly confirmed.

The parties have requested that the SEC file a status report within 60 days of the stay order. This report will provide updates on the progress of the settlement negotiations and any developments that may affect the case. If approved by the newly appointed SEC Chair Paul Atkins, the agreement could mark the end of the protracted legal battle over XRP. Atkins, who was confirmed on April 9, is expected to guide the agency towards a more favorable stance on cryptocurrencies.

The proposed settlement includes a $50 million civil penalty that Ripple has agreed to pay. This financial penalty is part of the broader resolution effort aimed at bringing closure to the dispute. The settlement is currently awaiting Commission approval, and no brief will be filed on April 16th as a result of the joint request to pause the appeal.

This development is a crucial milestone in the ongoing saga between the SEC and Ripple. The pause in appeals allows both parties to focus on finalizing the settlement, which could have far-reaching implications for the cryptocurrency industry. The outcome of this case will not only affect Ripple but also set a precedent for how other cryptocurrencies are regulated in the future.