- SEC and Ripple want to pause appeals so they can finalize a settlement agreement through court approval.
- Ripple and the SEC must report progress in 60 days if the settlement is not yet approved by the commission.
- Ripple bought Hidden Road for 1.25 billion while focusing on growth after progress in the XRP court case.
The U.S. Securities and Exchange Commission (SEC) and Ripple Labs have filed a joint motion to pause their legal appeals. The recent filing towards the resolution stems from an established agreement that settled the prolonged legal dispute. The parties made their submission to the U.S. Court of Appeals for the Second Circuit on Thursday.
A decision issued in 2024 by Judge Analisa Torres became the basis for the SEC’s initial appeal. That ruling found XRP sales to retail investors were not securities. Ripple responded by filing a cross-appeal later that month.
Settlement Review and Approval Process
The legal motion seeks judicial delay of both the SEC’s appeal and Ripple’s counter-appeal. The request aims to maintain both SEC appeals and Ripple cross-appeal under court supervision until settlement terms gain final approval. The SEC must submit a status update within 60 days if the agreement is not finalized.
Although Ripple disclosed that the SEC had dropped its appeal, official approval is still pending. The decision requires a vote by the agency’s Commissioners. Newly appointed SEC Chair Paul Atkins, confirmed on April 9, is expected to play a key role. His leadership is seen as potentially more favorable to crypto-related matters.
Once the agency approves the agreement, the parties will submit a joint motion to dismiss the appeals. A related motion might also be filed in district court to revise the earlier ruling by Judge Torres.
Ripple Executives Included in Motion
The court filing names Ripple CEO Brad Garlinghouse and Co-Founder Chris Larsen as appellees. Both parties have agreed to avoid further legal steps while the agreement moves toward finalization. This pause aims to conserve legal resources and avoid additional delays.
This strategy mirrors a similar move from February when the SEC and Binance requested a case delay. That pause was granted to provide time for policy adjustments and case resolution.
Business Shifts and Industry Developments
As the legal dispute winds down, Ripple is focusing on growth. On April 9, the company acquired prime brokerage firm Hidden Road in a $1.25 billion deal. This move reflects Ripple’s plan to expand into broader financial markets.
Meanwhile, Grayscale has filed for an XRP spot exchange-traded fund. The proposal is now under SEC review. This marks the first XRP ETF application to reach this level. There is also speculation that BlackRock could soon support a similar effort.
The SEC-Ripple case has become central to ongoing discussions about crypto regulation in the U.S. Ripple maintains that XRP should not fall under securities law.
