- Ripple and SEC agree to end the XRP case pending the final commission vote.
- Both parties will withdraw appeals as the $50M settlement moves forward.
Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have jointly filed a motion to pause their years-long legal battle. The move signals a significant shift toward settlement after nearly four years of litigation over XRP. Both parties confirmed the deal is awaiting final approval by the SEC commissioners. The court has been asked to suspend all legal proceedings, including the next deadline scheduled for April 16.
The joint motion was submitted on April 10 to the U.S. Court of Appeals for the Second Circuit. According to court filings, the appeal and Ripple’s cross-appeal will be placed in abeyance while final terms are formalized. Attorney James K. Filan reported that no briefs will be filed on April 16, confirming the procedural pause.
The legal dispute began in December 2020, when the SEC alleged that Ripple sold XRP as an unregistered security. The case intensified in July 2023 when a federal judge ruled that Ripple’s institutional XRP sales violated securities laws. However, the judge also stated that XRP sales on public exchanges did not qualify as securities transactions.
The SEC appealed the mixed ruling on October 3, followed by Ripple’s cross-appeal a week later. Now, both sides have decided to end the legal proceedings outside court. Attorney Stuart Alderoty from Ripple confirmed that both appeals will be withdrawn. The agreement includes a $50 million payment to the SEC, reduced from an earlier $125 million penalty.
Sources close to the matter noted that the agreement also covers separate charges against Ripple executives Brad Garlinghouse and Chris Larsen. If the settlement is approved, the SEC will also request that the court lift a prior injunction against Ripple.
The new SEC Chair, Paul Atkins, assumed office on April 9. His appointment has facilitated the ongoing negotiations. Known for being more crypto-friendly, Atkins has encouraged both parties to resolve the issue. The commission is expected to finalize the settlement process within 60 days.
The parties emphasized that the court-approved delay would help preserve judicial and party resources. They agreed that this stay would disadvantage no side. Following the SEC’s internal vote and the court’s procedural review, a final update is expected.
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