Ripple, SEC File to Suspend Appeal Amid Pending Settlement Deal

The U.S. Securities and Exchange Commission (SEC) and Ripple Labs have filed a joint motion to temporarily pause their appeals, stating that they have reached an agreement in principle to settle their ongoing legal battle.

The move follows Ripple’s recent decision to pay a $50 million civil penalty and withdraw its cross-appeal, which was part of the broader resolution process. The proposed settlement, however, is still under internal review and requires formal approval from the SEC.

Suspension of Appeals

The motion, filed with the U.S. Court of Appeals for the Second Circuit on April 10, requests suspending the appeals process while both parties finalize the settlement terms, pending the SEC’s approval.

#XRPCommunity #SECGov v. #Ripple #XRP The parties have filed a joint motion to hold the appeal in abeyance based on the parties’ agreement to settle. The settlement is awaiting Commission approval. No brief will be filed on April 16th. pic.twitter.com/OVKPCIh43H

— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) April 10, 2025

Attorney James Filan stated that the agreement would resolve both the SEC’s appeal and Ripple’s cross-appeal. It would also address claims against Ripple executives Brad Garlinghouse and Chris Larsen.

The parties have emphasized that the SEC commissioners need adequate time to review and decide whether to approve the agreement. If the court grants the motion, it would pause both appeals and waive the April 16 deadline for submitting briefs.

Additionally, the motion highlights that suspending the appeals would conserve both judicial and party resources by avoiding unnecessary litigation while settlement discussions continue behind the scenes. It further argues that the pause would not harm either party, as both have agreed to the move.

Ripple’s Legal Wins Amid Regulatory Scrutiny

Ripple’s case began with an SEC enforcement action in December 2020, accusing the firm of conducting unregistered securities offerings through XRP sales. A federal judge ruled in July 2023 that sales to institutional investors violated securities laws, but sales on secondary markets did not. That partial ruling set the stage for the current appeals, which are now on hold.

Notably, Ripple has continued to secure legal victories while facing regulatory scrutiny, insisting that its activities align with current securities laws. The company has also called for clearer legislative guidance to differentiate digital assets from traditional securities.

The recent motion suggests that both parties are working towards a final resolution of the case. If the court grants the request, it will provide the necessary time for the settlement process to be completed, potentially bringing the case to a close.

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