The U.S. Securities and Exchange Commission and Ripple Labs agreed to pause their ongoing appeals in the high-profile XRP case as a final settlement may be near.
In a joint court filing, both parties requested that the case be held “in abeyance,” meaning all proceedings will be paused while negotiations toward a resolution continue. The filing noted that this move would help preserve both judicial and party resources.
Ripple’s legal team had been expected to respond to a previous SEC brief by April 16, but that deadline has now been canceled. Defense attorney James Filan confirmed that no further filings would occur while the case remains on hold, stating on X that a settlement is currently “awaiting commission approval.”
The timing coincides with the Senate’s confirmation of Paul Atkins as the next SEC chair. While Atkins has not yet officially taken office, the delay has sparked speculation that the agency is waiting for him to be sworn in before finalizing a settlement. Atkins is expected to assume the role within days, possibly as soon as April 12, based on precedent.
Ripple CEO Brad Garlinghouse previously said the XRP case was effectively over following key court victories. The latest filing appears to cement that view, with the legal battle now in its final stages after nearly four years of proceedings.
As part of the agreement, the SEC will return $75 million of the $125 million fine Ripple paid last year — keeping just $50 million to settle the case.
The settlement comes shortly after the SEC dropped its planned appeal of a 2023 ruling by U.S. District Judge Analisa Torres. In that decision, Torres found that Ripple’s XRP sales to retail investors through exchanges didn’t break securities laws — a partial win for Ripple. However, she ruled that some institutional sales did cross the line, resulting in the $125 million penalty.
The SEC originally sought nearly $2 billion in civil penalties, disgorgement, and interest, but the court landed on a much lower figure. Now, Ripple could walk away with a refund covering 60% of that fine.
The legal battle originally stemmed from a December 2020 lawsuit alleging Ripple used XRP as an unregistered security to raise funds. In August 2024, a federal court ruled partially in favor of Ripple, finding the company liable for $125 million but rejecting the SEC’s claim that XRP inherently qualifies as a security.
The commission ramped up actions under former Chair Gary Gensler but has since backed off cases under Acting Chair Mark Uyeda. Since January, the SEC dropped multiple lawsuits against Coinbase, Consensys, Kraken, and other crypto firms, fueling speculation about whether political donations played a role.
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