Key Takeaways
- Ripple and the SEC have filed a joint motion to pause their ongoing appeals as they work towards a settlement agreement.
- The motion aims to conserve resources by temporarily halting the legal proceedings while awaiting Commission approval.
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The US SEC and Ripple Labs on Thursday submitted a joint motion to the Court of Appeals, seeking approval to pause their ongoing appeals following an agreement-in-principle to resolve their legal dispute.
In October 2024, the SEC appealed against a ruling from Judge Analisa Torres, challenging her decision that XRP sales to retail investors were not securities. Ripple decided to cross-appeal later that month in response to the SEC’s move.
The motion filed today seeks to hold both the SEC’s appeal and Ripple’s cross-appeal in abeyance while the parties pursue final approval of their settlement agreement. The parties have requested that the SEC file a status report within 60 days of the stay order.
Although Ripple has announced that the SEC has dropped its appeal, the securities regulator needs to internally approve this decision before making a public statement.
If approved by newly appointed SEC Chair Paul Atkins and other SEC Commissioners, the agreement could finally bring an end to the long-running case against XRP. Atkins, confirmed on April 9, is expected to steer the agency towards a more crypto-friendly approach.
Following the joint request, the Second Circuit will typically issue a stay, pause all deadlines, and schedule a status update, in this case, for June 9. In the weeks that follow, the SEC will internally review and vote on the proposed settlement.
Upon the SEC’s approval, the parties will jointly move to dismiss the appeal before the Second Circuit. Depending on the terms of the settlement, a motion might also be filed with Judge Torres in district court to address or amend the original judgment.
Once the Second Circuit grants the motion to dismiss the appeal, the settlement terms will be implemented.
In a similar move earlier this year, the SEC and Binance jointly requested a 60-day pause in their legal proceedings, which a US district judge approved on February 13. The purpose of the delay was to give the SEC’s crypto task force time to craft a more coherent regulatory framework for digital assets.
This is a developing story.
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