Ripple and SEC Move Toward Settlement: Will XRP’s Legal Status Be Resolved?

Ripple and SEC Seek Pause in Appeals – A Major Step Toward Settlement

Ripple and SEC – Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have filed a joint motion requesting a pause in their ongoing appeals process, signaling significant progress toward a potential settlement in their high-profile legal battle. The filing, made on Thursday, hints at a resolution to the dispute that has rocked the cryptocurrency industry since December 2020, when the SEC accused Ripple of selling XRP tokens as unregistered securities.

Potential Settlement on the Horizon

According to a post shared by attorney James Filan, Ripple and the SEC have reached an “agreement in principle” to resolve all remaining issues in the case. This includes the SEC’s appeal of the district court’s final ruling, as well as Ripple’s cross-appeal and the claims made against Ripple’s executives, Brad Garlinghouse and Chris Larsen.

The motion filed by both parties requests that the court pause the appeals process while they finalize the terms of the settlement. However, the deal still requires formal approval from the SEC’s commissioners before it can be officially concluded.

A Turning Point for XRP’s Legal Status

The legal dispute has been a focal point for debates surrounding the regulatory status of cryptocurrencies in the U.S., with Ripple arguing that XRP is a currency rather than a security, and thus beyond the SEC’s jurisdiction. If the settlement proceeds, it could provide clarity on the classification of XRP and have significant implications for future cryptocurrency regulations.

Parallel Cases and Regulatory Efforts

This request follows a similar filing made by the SEC and Gemini in early April, in which they sought a two-month pause to finalize a deal over Gemini’s Earn program. Both cases reflect ongoing efforts to resolve legal conflicts in the rapidly evolving cryptocurrency space.

The resolution of Ripple’s case would mark a pivotal moment for the regulatory landscape of digital assets in the United States, providing a potential roadmap for future regulatory clarity.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.