Ripple Labs and the U.S. Securities and Exchange Commission have jointly asked the Second Circuit Court of Appeals to pause their ongoing legal dispute, suggesting a full settlement may soon be reached.
The request, filed on Apr. 10 and publicly shared by attorney James Filan on X, shows that both sides have reached an “agreement-in-principle” to resolve the case. This includes the SEC’s original appeal and Ripple’s (XRP) cross-appeal, filed last October. The motion is still subject to approval by the SEC’s commissioners. Within 60 days of approval, the SEC will update the court on the status of the case.
The SEC accused Ripple of selling XRP as an unregistered security in December 2020. This sparked a major legal dispute between the two. Since then, it has grown to be one of the most widely followed court cases in the industry. In a landmark 2023 decision, the court determined that Ripple’s institutional sales did not violate securities laws, but XRP sales on public exchanges did. This gave Ripple a partial victory.
While both parties had indicated last month that a settlement was likely, the motion to pause proceedings was only just submitted. No reason was given for the delay. The motion also covers unresolved claims against Ripple executives and effectively halts all legal activity while the settlement is finalized.
Ripple is expected to pay a reduced civil fine of around $50 million, significantly lower than the original $125 million proposal. Should it be approved, the Ripple settlement may have an impact on how digital assets are regulated in the future and how cryptocurrencies are treated under U.S. law.
The announcement comes just before Paul Atkins, a new pro-crypto SEC chair, takes office after receiving Senate approval on Apr. 9. Atkins, who is renowned for his balanced stance on digital assets, is expected to guide the agency toward a clearer regulatory framework.
