SEC and Ripple Work Towards Settlement as Both Parties Seek 60-Day Appeal Pause

Ripple and SEC Push to Pause Appeals as Settlement Inches Closer

Ripple Labs and the U.S. Securities and Exchange Commission (SEC) are now closer than ever to settling one of the most closely followed crypto legal battles, after filing a joint motion seeking to pause their ongoing appeals for 60 days.

According to a court filing submitted on 10 April, the request to hold proceedings in abeyance comes as both parties work towards finalising a settlement.

The document confirmed they have reached an “agreement in principle” that would resolve all remaining elements of the lawsuit, including the SEC’s appeal, Ripple’s cross-appeal, and charges brought against Ripple executives Brad Garlinghouse and Chris Larsen.

Efforts Shift Toward Final Approval

The motion states that the parties “require additional time to obtain Commission approval for this agreement-in-principle, and if approved by the Commission, to seek an indicative ruling from the district court.”

The proposed 60-day abeyance, if granted, would give both sides space to secure the formal green light from SEC commissioners before completing the legal process.

This development comes just weeks after Ripple's legal chief Stuart Alderoty confirmed the company would not pursue its cross-appeal, a move that followed the SEC’s earlier decision to withdraw its own appeal.

In March, Ripple CEO Brad Garlinghouse revealed the agency had dropped its challenge against a prior court ruling which found that Ripple’s programmatic XRP sales did not breach securities laws.

A Legal Dispute That Shaped Crypto Regulation

The legal dispute began in December 2020 when the SEC sued Ripple, claiming it had raised over $1.3 billion through unregistered sales of XRP, which it considered a security.

Ripple maintained that XRP functions as a currency and is therefore not under the SEC's jurisdiction.

The case has since played a key role in shaping discussions around the regulatory treatment of cryptocurrencies in the United States, attracting widespread attention across the digital asset industry.

It has also served as a precedent for how similar enforcement actions could unfold against other crypto firms.

SEC’s Shifting Approach After Trump’s Election

Recent political changes in Washington appear to have influenced the SEC’s stance on crypto enforcement.

Since U.S. President Donald Trump returned to office, the agency has scaled back several lawsuits involving major players such as Coinbase and Kraken.

The commission has also clarified its position on tokens like memecoins, stating they are not considered securities, although it warned that fraud-related cases will still face enforcement.

Ripple may follow Gemini’s path to settlement

In early April, Gemini and the SEC took a similar step, requesting a two-month pause to finalise their settlement over the closure of Gemini’s Earn programme.

This ongoing trend points to a growing shift towards settlements between regulators and crypto firms, moving away from lengthy court disputes.

Attorney James Filan, who has closely tracked the Ripple case, shared the latest update confirming the agreement in principle, though final settlement details still hinge on formal approval from the SEC's leadership.