Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have filed a motion to pause their legal battle for 60 days, signaling a potential resolution of their ongoing dispute.
This move comes after both parties agreed in principle to settle the case, pending SEC approval.
The motion, filed Thursday, proposes an “abeyance” period to conserve judicial resources and provide both sides time to negotiate a final resolution. The legal dispute dates back to late 2020 when the SEC sued Ripple for selling XRP tokens, claiming the sales violated federal securities laws.
At the heart of the case was the issue of whether XRP should be classified as a security. Ripple’s legal team has consistently argued that the token is not a security and, therefore, should not be subject to SEC regulations.
Key Development: Agreement-In-Principle
According to the filing, Ripple and the SEC have reached an agreement-in-principle to resolve the case, including the SEC’s appeal and Ripple’s cross-appeal. However, the agreement is still pending SEC approval. If accepted, the parties would seek a final ruling from the district court.
Impact of Changing Regulatory Landscape
The case has been one of the most high-profile legal battles in the cryptocurrency industry. However, the landscape shifted after U.S. President Donald Trump’s election, which led to a more crypto-friendly stance by the SEC. This change in leadership resulted in the SEC dropping lawsuits against various companies, including Coinbase and Kraken.
Ripple CEO Brad Garlinghouse confirmed last month that the SEC had dropped its appeal on a court ruling that favored Ripple, which stated that Ripple’s programmatic sales of XRP did not violate securities laws. Additionally, Ripple decided not to pursue its cross-appeal against the SEC.
Waiting for Final Approval
The filing indicates that the parties need additional time to gain final approval from the SEC before proceeding with the settlement. If the agreement is approved, a district court ruling would follow.
While the central question in the case was whether XRP qualifies as a security, the SEC’s current leadership is working to define which cryptocurrencies are not considered securities. Notably, the SEC recently ruled that memecoins are not classified as securities, though they may still face enforcement actions if involved in fraud.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/ripple-and-sec-move-closer-to-settlement/