Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have taken a significant step toward resolution by jointly requesting the United States Court of Appeals for the Second Circuit to hold their respective appeals. This coordinated legal move suggests the two sides are working behind the scenes to reach a final settlement.
Parties Reach Agreement-in-Principle
According to the court filing, Ripple and the SEC have reached an “agreement-in-principle” to resolve their legal dispute. However, this proposed resolution still requires formal approval from the SEC’s commissioners, which could take additional time before the court formally acknowledges the case’s closure.
The request to suspend the appeals effectively suspends any further legal briefings or court actions pending the outcome of internal approvals.
Ripple Drops Cross-Appeal After SEC Softens Stance
This development follows a key shift in March when Ripple voluntarily dropped its cross-appeal. The decision came shortly after the SEC agreed to significantly reduce Ripple’s financial penalty and support the court in removing the proposed injunction that would have restricted Ripple’s business operations.
As a result, Ripple chose not to file its previously scheduled brief, which was due on April 16. This signaled a de-escalation from both parties and hinted at ongoing negotiations outside the courtroom.
SEC Previously Withdrew Its Appeal
Earlier in March, the SEC also withdrew its appeal against Ripple. These actions from both parties mark a turning point in a legal battle that has stretched since December 2020, when the SEC—under then-Chairman Jay Clayton—first sued Ripple for allegedly selling unregistered securities in the form of XRP tokens.
The prolonged case has become a cornerstone legal dispute in the broader debate over U.S. crypto regulation.
SEC Opposes Late Filing in Related Case
While Ripple and the SEC appear to be moving closer to settlement, the Commission remains firm in other crypto-related legal matters. Recently, the SEC urged a district court to reject an emergency request from Justin W. Keener, who attempted to introduce last-minute evidence into a separate enforcement action. The agency dismissed the filing as untimely and irregular.
Related article: XRP Hits 6.26M Wallets as Huge Whale Transfer Stirs Speculation
Conclusion: Settlement in Sight?
As Ripple and the SEC pause their appeals, industry watchers see this as a promising signal that one of crypto’s most-watched legal battles could end soon. While nothing is finalized until the SEC commissioners approve the agreement, the joint decision to halt further litigation reflects growing alignment between both sides.
If approved, this outcome could close a multi-year chapter for Ripple and influence how U.S. regulators and blockchain companies engage in future legal and compliance frameworks.
