In a significant development within the cryptocurrency sector, Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have jointly filed a motion requesting a pause in their ongoing appeals. This motion, filed on Thursday, is aimed at finalizing a potential settlement, indicating a possible resolution to one of the most notable legal disputes in the payments industry.
The conflict began in December 2020 when the SEC alleged that Ripple’s sale of XRP tokens constituted unregistered securities transactions. This confrontation has sparked extensive discussions regarding the regulatory framework surrounding cryptocurrencies in the United States. Ripple maintains that XRP is a currency, thereby asserting that it falls outside the SEC’s purview.
According to attorney James Filan, Ripple and the SEC have reached an “agreement in principle” that intends to address all pending matters. This resolution encompasses the SEC’s appeal following the district court’s final judgment, Ripple’s cross-appeal, and the claims made against Ripple founders Brad Garlinghouse and Chris Larsen.
As detailed in their recent motion, the parties are requesting that the court place the appeals process on hold while they work to finalize the settlement terms. Notably, this settlement still necessitates formal approval from the SEC’s commissioners.
This request aligns with a prior motion filed in early April by the SEC and Gemini, seeking court approval for a two-month pause in their litigation regarding Gemini’s Earn program. Such pauses indicate a trend towards finding mutual ground in ongoing legal battles within the digital asset space.
As developments unfold, industry participants and stakeholders are eagerly anticipating the outcome of this potential settlement, which could set important precedents in cryptocurrency regulation and enforcement.
