Ripple and the SEC Have Reached an 'Agreement-in-Principle' to Pause Their XRP Lawsuit Appeals

After more than four years of litigation, the SEC and Ripple have now jointly requested the court to hold their appeal and cross-appeal in abeyance

A new motion submitted on April 10 to the Second Circuit Court of Appeals reveals that the Securities and Exchange Commission (SEC) and Ripple have reached an “agreement-in-principle” for a negotiated resolution of the lawsuit.

The April 10 motion, which is available on the court’s website, showcases a surprising turn of events. Following a July 2023 ruling by Judge Analisa Torres, which partially favored Ripple by determining that its institutional sales of XRP violated securities laws while its programmatic sales on public exchanges did not, the SEC and Ripple have jointly moved to request a pause in their appeal and cross-appeal.

This request, which was granted by the court, will halt all legal activity for a period of 60 days, according to the filing, in order “to conserve judicial and party resources while the parties continue to pursue a negotiated resolution.”

The motion also cancels the previously scheduled April 16 deadline for Ripple to respond to the SEC’s appeal brief, as defense lawyer James Filan confirmed in an X post. "The settlement is awaiting Commission approval. No brief will be filed on April 16," Filan stated.

The SEC and Ripple are now seeking the approval of the commission’s commissioners for the settlement, which reportedly includes a reduced civil penalty of around $50 million, significantly less than the initial $125 million proposed by the SEC.

The case, which began in December 2020 with the SEC's accusation that Ripple sold XRP as an unregistered security, has since evolved into a broader debate about the classification of cryptocurrencies in the U.S., with Ripple defending XRP as a digital asset, not a security.

The case has also been closely followed by the crypto community, with many hopeful for a swift resolution that could provide much-needed regulatory clarity for the industry.

The April 10 motion marks a turning point in a long-running legal battle that has captivated the crypto world.

If approved by the SEC commissioners, the settlement could close the Ripple lawsuit and establish key precedents for U.S. crypto regulation.