XRP Drops 4.43% Amid Ripple-SEC Settlement Talks

XRP's latest price was $1.96, down 4.434% in the last 24 hours. This price movement comes amidst significant developments in the legal and regulatory landscape surrounding the cryptocurrency. The legal battle between Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC) has taken a significant turn as both parties have filed a joint motion to pause the appeals process. This development was reported by crypto influencer Amelie on X, who highlighted that the motion to hold the appeal in abeyance was filed based on a mutual agreement to settle the case. The joint motion was submitted to the U.S. Court of Appeals for the Second Circuit on April 10, 2025, requesting that the ongoing appeal and cross-appeal be placed on hold. The reason cited is that the parties have reached an “agreement-in-principle” to resolve the underlying case, pending formal approval by the Commission. This means no briefs will be filed on April 16, the date previously set for Ripple’s response and the opening briefs for Garlinghouse and Larsen. The court issued a scheduling order on January 31, 2025. The joint motion further explains that the parties seek additional time to obtain the SEC’s approval of the proposed settlement. If approval is granted, the Commission may seek an indicative ruling from the district court to formally conclude the matter. Until then, both the appeal filed by the SEC on October 3, 2024, and Ripple’s cross-appeal filed on October 10, 2024, will remain in abeyance. The filing underscores that holding the appeals in abeyance would conserve judicial and party resources as negotiations proceed. The SEC is required to file a status report within 60 days of the stay order to update the court on the progress of the potential resolution. This latest action stems from the long-standing litigation initiated in December 2020, when the SEC filed a lawsuit against Ripple Labs, alleging that its sales of XRP constituted an unregistered securities offering. Ripple and its executives have maintained that XRP does not meet the definition of security and challenged the SEC’s claims in court and the broader public discourse. While the “agreement-in-principle” details have not yet been made public, the joint motion signals that both parties are actively working toward a final resolution. The involvement of the SEC’s internal approval process suggests that this proposed settlement is at a critical stage. Many legal experts in the crypto community interpreted the decision to halt the appeals process as a significant milestone. Although the outcome is contingent upon internal review by the Commission, the motion confirms that the parties are no longer pursuing continued litigation at this time. The United States Securities and Exchange Commission (SEC) and Ripple Labs have filed a crucial joint motion after their mutual settlement. According to the filing lodged with the US Court of Appeals for the Second Circuit, both parties want the Appeals to be held in Abeyance, pending the court’s final approval of the resolutions. With this joint motion, which names Ripple CEO Brad Garlinghouse and Founder Chris Larsen as appellees, the parties have agreed not to take further action in the case. This will ultimately help conserve resources, considering the full agreement by both parties prior to this time. This filing comes as the regulator dismissed the XRP lawsuit appeal amid a changing or positive regulatory shift in the country. With the call for Abeyance, the expected brief billed for April 16th will no longer be necessary. Ripple, a San Francisco-based fintech giant, announced that it is acquiring prime brokerage Hidden Road for $1.25 billion. This makes Ripple the first crypto company to own and operate a global, multi-asset prime broker. Hidden Road serves hundreds of institutional clients, including hedge funds and quant traders, and Ripple has been its long-time customer. The acquisition is expected to enhance Ripple’s stablecoin business, with its RLUSD being used as collateral across Hidden Road’s offerings. Ripple CEO Brad Garlinghouse commented on the company’s move on his X page: "With this deal and the backing of Ripple’s significant balance sheet, Hidden Road will exponentially expand its capacity to service its pipeline and become the largest non-bank prime broker globally." On Tuesday, April 8, the first U.S.-based XRP ETF, the Teucrium 2x Long Daily XRP ETF (XXRP), debuted with a "very respectable" trading volume of $5 million. The expert noted that this performance places XXRP in the top 5% of new ETF launches, significantly outperforming a recently launched leveraged Solana ETF. "Despite all the negative sentiment from people within the crypto industry, I’ve always maintained that XRP has much more appeal than industry players want to admit," wrote pro-XRP lawyer John Deaton on X. As previously reported, the new U.S.-based XRP ETF offers 2x leveraged exposure to XRP through swaps; the product is designed as a tool for short-term speculation on volatility. The broader digital currency ecosystem is capitulating with XRP price in the spotlight. While the top altcoins are gradually reversing their gains in the market, the trading volume of XRP on Upbit, a top cryptocurrency exchange in South Korea, suggests shifting positive interest in the market.