Ripple Labs and the U.S. SEC just hit pause on their legal tug-of-war. On April 10, 2024, the two sides filed a joint motion asking a federal appeals court to temporarily stop proceedings—strongly suggesting they’re finally nearing a deal to settle their nearly four-year showdown over XRP.
This high-profile clash began back in December 2020 when the SEC accused Ripple of illegally selling XRP as an unregistered security.
Things escalated last July when a judge ruled that Ripple had indeed broken securities laws with its institutional sales—but gave Ripple a partial win by stating that XRP sales on secondary markets didn’t fall under the same category.
The SEC appealed that decision in October, and Ripple fired back with its own cross-appeal. But now, it seems both parties are ready to find a middle ground.
The motion asks the court to pause all appeal-related deadlines, including an upcoming one on April 16, while they work out the final details. Attorney James Filan shared that the proposed deal would wrap up not just the appeals but also the SEC’s separate claims against Ripple execs Brad Garlinghouse and Chris Larsen.Â
Sources say Ripple is prepared to pay a $50 million civil penalty and drop its cross-appeal, though the deal still needs a green light from SEC commissioners.
One of the driving forces behind this shift is Paul Atkins, who stepped in as the new SEC Chair on April 9. Known for his more balanced and crypto-friendly stance, Atkins could be the one to help both parties find common ground. If things move smoothly from here, the settlement could be wrapped up in the coming weeks, with a formal update expected from the court in 60 days.
Interestingly, this isn’t the first time the SEC has tapped the brakes—it did something similar in its case against Binance earlier this year to reassess its approach to crypto oversight. For Ripple, this latest move is a welcome shift after years of courtroom back-and-forth and a sign the company might finally be turning the page.
While it’s still early, the mood in the industry is cautiously upbeat. If the deal sticks, it might not just close a chapter for Ripple—it could help set the tone for how regulators and crypto firms work together going forward.
Also Read: Ripple XRP VS. SEC: Will New Chair Paul Atkins Close Case on April 16?
