Ripple and the U.S. Securities and Exchange Commission have filed a joint motion to pause ongoing appeals for 60 days as they pursue a possible negotiated resolution to their multi-year legal dispute over XRP’s regulatory status.
Background
- The high-profile legal clash between Ripple Labs and the SEC began in December 2020 when the regulator sued Ripple over its sale of XRP, alleging the token was an unregistered security.
- The case became a landmark legal battle in the crypto industry, with its outcome closely watched for broader regulatory implications.
- Over the years, the lawsuit has evolved with shifting court rulings and leadership changes within the SEC.
- A critical turning point occurred after a federal court determined that Ripple’s programmatic sales of XRP did not constitute securities offerings, a decision that prompted the SEC to drop its appeal in March. Ripple, in turn, chose not to pursue its cross-appeal.
- Now, both parties have submitted a legal request to place their appeals and cross-appeals in abeyance for 60 days to finalize a possible settlement.
- The filing, dated Thursday, said the two sides have reached an agreement-in-principle, pending approval from the SEC’s internal commission.
Why Should You Pay Attention?
- This case has major implications for the broader crypto industry. If settled, it could provide clarity on how U.S. regulators classify digital assets, influence future legal battles, and potentially unlock new momentum for XRP and similar tokens that have faced regulatory scrutiny.
- The outcome may also serve as a precedent for other companies navigating the regulatory landscape.
Who Said What?
- Legal Filing (April 11):
“An abeyance would conserve judicial and party resources while the parties continue to pursue a negotiated resolution of this matter.”
- Brad Garlinghouse, Ripple CEO (March):
Confirmed that the SEC withdrew its appeal following a favorable court ruling on XRP’s programmatic sales.
- Stuart Alderoty, Ripple Chief Legal Officer:
Said Ripple would not proceed with its cross-appeal as the parties moved toward resolution.
- SEC (Recent Statements):
Under new leadership, the agency has dropped several crypto-related lawsuits and acknowledged that some tokens—such as memecoins—may not be classified as securities, though they could still face enforcement actions for fraud.
Zooming Out
- The request for a 60-day pause marks a potential thaw in the years-long legal standoff between Ripple and the SEC, signaling a shift in how U.S. regulators may approach crypto enforcement under the current administration.
- The SEC’s evolving position reflects a broader trend in Washington toward regulatory clarity and industry collaboration rather than adversarial oversight.
- If finalized, this resolution could boost investor confidence, reshape crypto compliance strategies, and serve as a model for resolving similar disputes between regulators and blockchain companies moving forward.
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