Ripple,SEC Pause Appeals,Agree to Settle 2020 Dispute

Ripple and the U.S. Securities and Exchange Commission have taken a significant step towards resolving their long-standing legal dispute. On Thursday, both parties filed a joint motion to the U.S. Court of Appeals for the Second Circuit to pause their respective appeals. This move comes after they reached an agreement-in-principle to finalize a potential settlement, marking a pivotal moment in the case that has been ongoing since 2020.

The joint motion indicates that the parties have agreed to settle the dispute, with the settlement awaiting formal approval from the SEC commissioners. This development was first hinted at by Ripple CEO Brad Garlinghouse last month, who announced that the SEC would be dropping its appeal. The new filing confirms that the regulatory agency has indeed withdrawn its appeal, which was launched in October, and suggests that Ripple is also seeking to dismiss its cross-appeal.

The document filed by the parties clarifies that while an agreement-in-principle has been reached, it has not yet been formally approved by the SEC commissioners. The filing states, “The parties require additional time to obtain Commission approval for this agreement-in-principle, and if approved by the Commission, to seek an indicative ruling from the district court.” This indicates that the final approval might only happen after Paul Atkins, Trump’s pick for the new chairman, officially takes over. Atkins was confirmed by the U.S. Senate on Wednesday, and his swearing-in could be imminent.

The legal dispute between Ripple and the SEC began in December 2020 when the agency filed a lawsuit alleging that Ripple had raised $1.3 billion through the sale of unregistered securities in the form of XRP. In July 2023, Judge Analisa Torres ruled largely in favor of Ripple, determining that sales of XRP to retail investors via exchanges did not violate federal securities laws. However, the SEC appealed this ruling more than a year later, challenging that securities law was broken by Ripple’s direct offering of XRP on exchanges and by personal sales of XRP by CEO Brad Garlinghouse and Executive Chairman Chris Larsen.

With the appeal now being dropped, the legal pressure on XRP has been significantly reduced. This could potentially lead to a price explosion for XRP, as the cryptocurrency has struggled to gain strong bullish momentum since reaching its cycle peak at $3.40 in mid-January 2025. The resolution of this legal dispute could remove a major obstacle for XRP, allowing it to potentially reach new lifetime highs.