Ripple,SEC Pause Legal Battle, Aim for Settlement

The United States Securities and Exchange Commission (SEC) and Ripple Labs have jointly submitted a motion to pause their ongoing legal battle, indicating a potential resolution to their long-standing dispute. The motion, filed with the US Court of Appeals for the Second Circuit, requests that all appeals and cross-appeals be halted pending the court's final approval of the settlement. This development follows both parties agreeing to a tentative settlement, aiming to conserve resources and avoid further legal costs and delays.

The joint motion, which includes Ripple CEO Brad Garlinghouse and Founder Chris Larsen as appellees, shows that both sides have reached a mutual agreement to pause the appeal process. This decision is expected to save both parties significant resources and time, as they await the court's final approval of their settlement. The court document, shared by lawyer James Filan, also states that Ripple must submit a status report within 60 days if the settlement does not get approved.

The pause in the appeal process suggests that a potential settlement may be imminent, pending approval by the SEC. This development comes amid a changing regulatory landscape, with the SEC recently dismissing the XRP lawsuit appeal. The expected brief billed for April 16th will no longer be necessary, as both parties have agreed to pause the appeal to avoid further legal costs and delays while waiting for the court to finalize their settlement.

With the lawsuit nearing an end, Ripple is shifting its focus toward its business expansion. On April 9, 2025, Ripple Labs acquired Hidden Road, a financial prime brokerage firm, in a $1.25 billion deal. This move is seen as a strategic initiative to strengthen Ripple’s position in the mainstream financial space. The broader Ripple ecosystem is also pushing for an XRP exchange-traded fund, with most asset managers, including Grayscale Investments, filing in January 2025 to convert its XRP Trust into a full-fledged spot ETF. This places it as the first fund to reach that stage, and there is speculation that investment giant BlackRock might join the XRP ETF push in the US.

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 legal battle between Ripple and the SEC will come to a close, marking a significant milestone in the cryptocurrency industry. This development is expected to have a positive impact on the broader Ripple ecosystem, as it paves the way for further business expansion and innovation.