- Ripple and the SEC request a court pause to finalize a long-awaited settlement.
- The case resolution may set a precedent for future U.S. crypto regulation.
In a major development, Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have jointly asked a federal court to pause their long-running legal battle. The request demonstrates that both sides are probably nearing completion of a complete settlement.
SEC to Update Court in 60 Days on Ripple Case Status
Crypto attorney James Filan published the motion on X (formerly Twitter) as he obtained it from the Second Circuit Court of Appeals on April 10. Ripple and the Securities and Exchange Commission (SEC) rest on an outline where they seek to settle their ongoing dispute. The parties submitted their fundamental materials to the Second Circuit Court of Appeals through their separate appeals and cross-appeals published in October of last year.
The agreement stands at an intermediate stage before receiving all necessary final approvals from SEC commissioners. Once the SEC possesses approval, it will provide an update about the case advancement to the court within a period of 60 days.
One of the most important legal cryptocurrency clashes has reached a critical phase through this shared court document. Recently, Ripple has reached an agreement to pay approximately $50 million in civil penalties to settle the case. The final civil penalty stands at $50 million, which represents a substantial reduction from the SEC’s initial demand of $125 million.
Acceptance from the court of the present regulatory pause might establish guidelines for United States-wide cryptocurrency regulations. The court settlement might become an official legal guideline regarding how U.S. law handles digital currency assets, including XRP from Ripple.
A current problem in this case centers on Ripple’s cross-appeal that contends against particular assertions made by the SEC. The combined signals from both sides create possibilities for resolving the remaining disputed point in this agreement.
Ripple, SEC Move Closer to Settlement After Long Dispute
The two parties showed settlement willingness more than two weeks ago, yet the official petition was submitted just recently. These dual actions demonstrate an unusual unification between two entities that traditionally fought against each other in crypto regulation matters.
Interestingly, the newest legal update had no significant impact on the XRP market price. XRP exhibited decreased sensitivity to lawsuit-related news after the SEC dropped some charges during the previous year.
The filing includes a petition to the court asking for “staying” the entire appeal and cross-appeal process. Two months follow this period when the SEC must submit a report about the monitoring process. The agreement will create time for both parties to finalize their settlement agreement beyond court-mandated timelines.
The resolution of this case could establish future guidelines that the SEC will utilize when dealing with prominent cryptocurrency businesses, Coinbase and Kraken. The way regulators, together with cryptocurrency companies, function currently shows positive signs for encouraging industry growth.
Finally, both legal teams assured the rest of the parties that this temporary suspension would cause no harm. Such a space created by this pause could lead to a peaceful outcome for a case that has fascinated the crypto world since its inception. The proposed settlement has the potential to shape U.S. crypto policy as a major turning point by resolving one of the longest digital asset disputes in history.
