Settlement in Sight? Ripple and SEC File Joint Motion to Stay the Appeal

The years-long lawsuit between Ripple Labs and the United States Securities and Exchange Commission (SEC) may finally be coming to an end, for real.

A motion filed on Thursday revealed that the duo has jointly requested a pause on their individual appeals case. This latest move comes days after back-and-forth efforts to prolong the lawsuit. Still, the case awaits the Commission’s approval.

The Final End?

Since December 2020, the SEC has repeatedly claimed that Ripple’s XRP token offering classifies as an unregistered securities offering. Hence, the blockchain payment company must be penalized. Regarded as a high-profile case, the outcome of the Ripple vs. SEC case potentially sets a precedent for crypto regulation in the country and beyond.

After the lawsuit seemed to have concluded, evidence showed that the financial agency was not ready for a final settlement. Talks about a possible continuation of the case caused onlookers to expect the submission of briefs on April 16th.

However, current developments suggest that the lawsuit may finally be ending. Defense lawyer James K. Filan shared a document showing that the SEC had agreed to discontinue its appeal and Ripple’s cross-appeal. It also covered claims against Ripple’s founders, Brad Garlinghouse and Chris Larsen.

The joint motion was filed with the U.S. Court of Appeals for the Second Circuit yesterday. Filan stressed that the latest motion means no briefs will be filed on April 16th, as previously expected.

It is worth noting that the outcome of this agreement is subject to the Commission’s endorsement. If the deal is approved, the SEC and Ripple Labs can draft the final settlement terms to settle a lawsuit that began nearly five years ago.

Impact on XRP’s Performance

Following the joint motion from the SEC and Ripple Labs, XRP’s price failed to impress. On-chain data shows that the digital asset’s price sharply declined from $2.022 to $1.93 within the past 24 hours.

However, its price had rebalanced at $2 at press time, representing a mild 0.65% increase over the past 24 hours. Its traded volume had also dropped significantly by 51% to $4.07 billion.