Ripple Labs and the U.S. SEC have taken a major step toward resolving their long-standing legal dispute. On Thursday, both parties jointly filed a motion to place their ongoing appeals and cross-appeals on hold for 60 days.Â
This legal pause, known as an abeyance, would give them time to finalize a negotiated resolution without further legal filings. In their joint request, they said a temporary stay would help conserve resources for everyone involved.
Ripple And SEC File Joint Motion To Pause Dispute
The case has stretched on for years and been closely watched by the cryptocurrency industry. The SEC first filed its appeal in October 2024, challenging a ruling by Judge Analisa Torres.
That ruling determined that Ripple’s sales of XRP to retail investors did not count as securities. Ripple responded shortly after with its cross-appeal. Now, both sides are stepping back to focus on a potential settlement rather than pushing the appeals process forward.
Leadership Change Brings a New Approach
The situation began to shift after the election of U.S. President Donald Trump. His administration appointed Paul Atkins as the new SEC Chair, a figure seen as more favorable to cryptocurrency regulation.
Atkins was confirmed on April 9, and his leadership appears to be part of the reason why the agency is pulling back from some of its most aggressive legal battles.
Recent months have shown a change in tone from the SEC. Several high-profile cases, including lawsuits against Coinbase and Kraken, have already been dropped. Ripple executives have also confirmed this shift.
CEO Brad Garlinghouse recently stated that the SEC had backed off from appealing a previous court ruling related to XRP’s programmatic sales. Chief Legal Officer Stuart Alderoty said that Ripple also chose not to pursue its cross-appeal further.
What Happens Next in the Case?
The motion filed this week asks the Second Circuit to officially pause all deadlines and await a status update from the SEC within 60 days. If granted, the court would likely issue a stay and wait to hear back by June 9. At that time, the SEC will conduct an internal review and vote on the proposed settlement.
Once that internal process is complete, both Ripple and the SEC are expected to jointly request that the appeals be dismissed. That motion would be filed in the Second Circuit.
Depending on how the settlement is worded, they might also return to the district court to ask Judge Torres to modify or clarify the original judgment. The outcome would bring long-needed closure to a case that has influenced the entire crypto market.
This latest development marks one of the clearest signs yet that Ripple and the SEC are ready to move on. Years of legal back-and-forth may finally give way to a formal agreement.
While nothing is finalized yet, the joint motion suggests both parties are motivated to reach a solution. As the SEC changes course under new leadership, the crypto industry is watching closely to see how future enforcement actions will unfold.
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