SEC and Ripple file joint motion to pause appeals to pursue settlement terms

The US Securities and Exchange Commission (SEC) and Ripple Labs have jointly filed a motion to hold their appeals in abeyance, citing an agreement in principle to resolve their long-standing case. 

The motion, submitted to the United States Court of Appeals for the Second Circuit on April 10, seeks to suspend proceedings while the parties finalize the settlement terms, pending the SEC’s formal approval.

According to the filing shared by lawyer James Filan, the agreement would resolve not only the SEC’s appeal but also Ripple’s cross-appeal and claims against Ripple executives Brad Garlinghouse and Chris Larsen. 

If granted, the motion would pause the appeals process and eliminate the requirement for the parties to submit briefs by the previously scheduled April 16 deadline.

Per court records, the SEC filed its notice of appeal on Oct. 3, 2024, challenging the district court’s final judgment. Ripple followed with a cross-appeal on Oct. 10, contesting portions of the same ruling. 

The Commission filed its opening brief on Jan. 15, and the court subsequently set deadlines for Ripple and its executives to respond. Those briefs are suspended pending further court action on the motion to stay.

Settlement terms await commission approval

Ripple recently agreed to pay a $50 million civil penalty and withdraw its cross-appeal as part of the broader resolution effort. The proposed settlement is still subject to internal review and formal approval by the Commission. 

If approved, the parties may seek an indicative ruling from the US District Court for the Southern District of New York, where the case originated.

The motion emphasizes that pausing the appeals process would conserve judicial and party resources while negotiations are finalized. The parties have requested that the Commission file a status report within 60 days of any stay order issued by the appellate court.

Moreover, the filing states that the delay would prejudice no party and that all parties to the appeal and cross-appeal have consented. 

Over four years of litigation

The case stems from a December 2020 enforcement action in which the SEC alleged that Ripple’s sales of XRP constituted unregistered securities offerings.

In July 2023, a federal judge ruled that XRP sales to institutional investors violated securities laws, while programmatic sales on secondary markets did not. That partial ruling set the stage for the appeals now placed on hold.

In the ensuing months, Ripple has secured multiple legal wins while facing ongoing regulatory scrutiny. The company has maintained that its operations comply with current securities laws and has called for clear legislative guidance to distinguish digital assets from traditional securities.

The latest filing indicates that both sides are moving toward a final resolution of the multi-year dispute. A court order granting the motion would allow the parties additional time to complete the settlement process and potentially close the case.

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