The long-running legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs has taken a significant turn, with both sides filing a joint motion to hold the ongoing appeal and cross-appeal in abeyance.
The pause signals that a potential settlement may be imminent, pending approval by the SEC.
According to the April 10 court filings submitted to the U.S. Court of Appeals for the Second Circuit, the parties have “reached an agreement-in-principle, subject to Commission approval, to resolve the underlying case.”
This agreement includes the SEC’s appeal, Ripple’s cross-appeal, and claims involving executives Brad Garlinghouse and Chris Larsen.
The filing notes that the stay would conserve judicial and party resources while the Commission considers the settlement terms. If approved, the SEC may then seek an indicative ruling from the district court. A status report is expected to be filed within 60 days of the court’s stay order.
The SEC initially filed its notice of appeal on October 3, 2024, following the district court’s final judgment. Ripple responded with a cross-appeal on October 10.
The Commission submitted its opening brief in January 2025, and the court had scheduled April 16 as the deadline for Ripple and the executives to respond — a deadline now suspended due to the stay.
Notably, attorney James K. Filan, who has closely followed the case, tweeted:
“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.”
This development marks the most substantial progress toward resolution since the SEC first filed suit against Ripple in December 2020, alleging that XRP was an unregistered security. A settlement, if finalized, could have major implications not just for Ripple, but for the broader regulatory landscape of digital assets in the United States.
On March 25, Ripple and the U.S. Securities and Exchange Commission reached a landmark agreement to end their four-year legal battle. Ripple will pay $50 million of the original $125 million penalty, with the remainder refunded from escrow, according to Chief Legal Officer Stuart Alderoty.
On April 8, the SEC urged Judge Analisa Torres to reject a filing in the Ripple case. The submission came from Justin W. Keener, seeking to present new evidence. The SEC called it “improper, unnecessary,” and outside the court’s authority while the appeal is active.