Ripple,SEC Pause Legal Battle,Potential Resolution Near

Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC) have jointly requested a pause in their ongoing legal battle, signaling a potential resolution to the long-standing dispute over the classification of Ripple's XRP cryptocurrency. The joint motion, filed on April 10 with the U.S. Court of Appeals for the Second Circuit, outlines a plan to resolve all outstanding court actions, including the SEC’s appeal and Ripple’s cross-appeal. This development comes after years of legal contention regarding whether Ripple’s sales of XRP violated federal securities laws.

The court filing indicates that both parties have agreed in principle to conclude the case, pending formal approval from the SEC Commission. The document states that additional time is needed to obtain this approval and seek a district court ruling if the agreement moves forward. Attorneys for both parties have stated that halting the case temporarily would preserve resources for the court and involved parties. The case has remained active for over four years and has been closely followed due to its impact on how digital assets are regulated in the United States.

The April 16 deadline for Ripple to file its legal brief adds pressure to the situation, matching expert predictions of a resolution soon. Attorney Fred Rispoli, who closely tracks the case, estimates there’s a 90% chance that a resolution will be reached or the SEC will withdraw its appeal by April 16. Rispoli believes the two sides might have already privately settled on terms, even though the SEC has not yet made a formal public statement.

The core legal question in the case was whether Ripple’s sales of XRP amounted to an unregistered offering of securities. A prior ruling found that XRP’s sales on digital exchanges did not qualify as securities, a specific finding that appellate courts have not yet overturned. Separate from the settlement motion, the court received an “emergency filing” request linked to evidence about the XRP case. The request, addressed to Judge Analisa Torres, reportedly connects to documents from an unrelated SEC enforcement action against a different individual. However, the SEC opposed the filing, citing procedural issues and a lack of jurisdiction. The Commission further argued that Ripple could decide independently whether to incorporate the evidence and maintained that the emergency request was unnecessary at this stage of proceedings.

The joint request to temporarily suspend the appeal process is seen as a potential basis for reaching a settlement. If this request is granted, it could pave the way for a final resolution to the legal battle, which has significant implications for the regulation of digital assets in the United States. The outcome of this case will likely set a precedent for how other cryptocurrencies are treated under securities laws, making it a landmark decision in the evolving landscape of digital finance.