- Ripple and SEC near settlement, await formal approval before April 16 deadline.
- SEC’s closed-door April 10 meeting could finalize Ripple settlement decision.
- Emergency filing by Keener challenged by SEC amid ongoing Ripple case pause.
Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC) have taken a major step toward resolving their multi-year legal dispute, with a recent court filing showing a move to suspend ongoing proceedings. The development comes as both sides work to finalize a settlement over the classification of XRP, Ripple’s native digital asset, following more than three years of litigation.
On April 10, attorneys for Ripple and the SEC submitted a joint motion to the U.S. Court of Appeals for the Second Circuit requesting a pause in the case. The filing also included key figures in the dispute, Ripple executives Brad Garlinghouse and Christian Larsen.
Agreement-in-Principle Requires SEC Approval
According to the court document, Ripple and the SEC have agreed in principle to resolve several layers of the ongoing litigation. The proposed settlement aims to cover the original case, the SEC’s appeal, and Ripple’s cross-appeal. However, the deal remains awaiting formal approval from the SEC’s commissioners.
The motion also outlined the practical reasons for halting the proceedings, noting that conserving court resources during settlement discussions would be in all parties’ best interests. If the SEC approves, Ripple and the agency plan to seek an indicative ruling from the district court to finalize the agreement.
The case originated from the SEC’s 2020 lawsuit accusing Ripple of conducting unregistered securities offerings through XRP sales. Ripple has heavily defended that XRP is not a security which was reinforced by a legal victory in 2023 despite a great shift in the regulatory environment of the digital asset sector.
SEC Meeting and Appellate Brief Deadline Loom
Attention now turns to two major dates that could determine the next steps in the case. The SEC scheduled a closed-door meeting on April 10, which may address the pending settlement. The timing is crucial, as Ripple faces an April 16 deadline to file its appellate brief if no settlement is reached.
However, legal analyst Fred Rispoli has suggested there is a 90% probability that the SEC will either withdraw its appeal or finalize a settlement by April 16. Rispoli further noted that Ripple’s announcement regarding the possible settlement appeared to come without written assurances from the SEC, reflecting the regulator’s typical practice of working privately before publicizing decisions.
Emergency Filing Adds New Layer to Case
While settlement discussions advance, the case took another turn with an emergency filing by Justin W. Keener at the start of April. The filing was submitted to Judge Analisa Torres and described as an effort to present evidence that could favor Ripple’s defense. Keener’s submission claimed to support the rights of defendants and broader legal principles.
The SEC opposed the filing for three main reasons. The agency argued that the district court no longer had jurisdiction since the case had been transferred to the Second Circuit. It also pointed out that Keener had failed to submit the correct motion to intervene in the case. Finally, the SEC stated that the request was unnecessary, emphasizing that Ripple could determine whether the evidence would benefit its legal strategy.
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