- Ripple and SEC have filed a joint motion to pause appeals while they finalize a settlement agreement.
- The potential settlement could end a legal battle dating back to December 2020 over whether XRP tokens are securities.
- The agreement would resolve all outstanding issues including claims against Ripple founders Brad Garlinghouse and Chris Larsen.
Ripple Labs and the U.S. Securities and Exchange Commission (SEC) submitted a joint motion on Thursday requesting a pause in their ongoing appeals process to finalize a settlement agreement. According to court documents, the parties have reached an “agreement in principle” that could potentially end their years-long legal dispute over XRP tokens, which began in December 2020 when the SEC alleged Ripple sold unregistered securities.
The filing indicates both parties are seeking to hold their appeals “in abeyance” while they work through the final settlement terms. As shared in a post by attorney James Filan, this agreement would comprehensively resolve all outstanding issues in the case, including the SEC’s appeal of the district court’s judgment and Ripple’s cross-appeal.
Settlement Scope and Significance
The proposed settlement would also resolve claims against Brad Garlinghouse and Chris Larsen, Ripple’s founders who were named in the original complaint. This development marks a potential turning point in what has become a landmark case for the cryptocurrency industry, as it centered on the fundamental question of whether XRP functions as a currency or a security subject to SEC regulation.
While the parties have agreed in principle, the settlement still requires formal approval from the SEC commissioners before it can be finalized. This procedural requirement means that while significant progress has been made, the case is not officially resolved.
Broader Regulatory Context
This case has been closely watched by the cryptocurrency industry as it addresses core questions about regulatory boundaries in digital asset markets. Ripple has consistently maintained that XRP is a currency, not a security, and therefore falls outside the SEC’s jurisdiction.
The pause request follows a similar pattern to other recent SEC settlements in the cryptocurrency space. In early April, the SEC and Gemini requested a two-month pause in their proceedings to finalize a settlement regarding Gemini’s Earn program.
If approved, this settlement could provide clearer guidance for other cryptocurrency companies navigating the complex regulatory landscape in the United States, potentially influencing how digital assets are classified and regulated in the future.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Web3 Gaming Investment Falls 71% in Q1 2025, Despite More Deals
- SEC Clarifies Crypto Securities Disclosure Guidelines For Issuers
- SEC Dismisses Helium Lawsuit, Rules Tokens & Hotspots Aren’t Securities
- Senate Dems Blast DOJ for Cutting Crypto Enforcement Team
- Trump Repeals IRS Rule Requiring DeFi Platforms to Report Transactions
