SEC and Ripple Pause XRP Case as Settlement Nears, Price Rises

SEC and Ripple pause XRP case appeals as settlement talks progress

In a major development in the ongoing legal fight between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs, both sides have agreed to suspend their appeals jointly. The development comes as speculation is building over a possible settlement looming on the horizon, possibly fueled by the forthcoming change in SEC leadership.

Joint Motion Filed to Suspend Proceedings

On April 10, SEC and Ripple jointly moved in court to put their pending appeals into "abeyance," a judicial term that means the proceedings are suspended temporarily. The move reflects that both parties are making efforts towards a possible settlement out of court. "The abeyance would save judicial and party resources while the parties continue to seek a negotiated resolution of this matter," the filing said.

Ripple CEO Had Previously Suggested Case Closure

Ripple CEO Brad Garlinghouse had previously stated on March 19 that the XRP case was almost over. The recent filing appears to validate those statements, particularly as the momentum of the case appears to change with shifts in SEC leadership.

Delay in Brief Filing Affirms Settlement Intent

Defense attorney of Ripple, James Filan, posted on X (formerly Twitter) that the April 16 deadline for Ripple to file its response to the SEC's earlier brief has been withdrawn. "The settlement is pending commission approval. No brief will be filed on April 16," posted Filan. Legal insiders think this action indicates the SEC's willingness to let the case go once Paul Atkins formally becomes the chair.

Paul Atkins to Take Gary Gensler's Place

Paul Atkins, who was nominated to take over as SEC chair for Gary Gensler, was confirmed by the Senate on April 9. Yet it is not clear when he will actually be sworn in. Traditionally, this happens in a matter of days. Gensler, for example, began his job three days after being confirmed in 2021, suggesting Atkins might take over as early as April 12. The likelihood of leadership shift has generated hope among the crypto community, with most seeing Atkins as less crypto-hostile. 

A Turning Point for XRP?

The XRP lawsuit, which has been going on for years, may be drawing to a close. With both sides suspending appeals and leadership at the SEC changing, many expect an eventual settlement to be announced soon—potentially generating long-sought clarity regarding XRP's regulatory status. 

This event had a slightly positive impact on the XRP price, the coin is currently trading at $2.01, with an approximate market cap of $117.46B. It has experienced an upward trend and the percentage change in the price is an increase of 0.84% in the past 24 hours. Although the trading volume has decreased by 45.95% due to the focus shifted on legal proceedings the price of the coin is likely to surge. The result of the lawsuit will bring market confidence.