The U.S. Securities and Exchange Commission (SEC) and Ripple Labs are ramping up efforts to resolve their ongoing legal dispute. They have submitted a request to the U.S. Court of Appeals for the Second Circuit to pause their current appeal.
Court Proceedings Update
According to defense attorney James K. Filan, this decision was made in light of a pending plea for an indicative ruling from the district court that could facilitate a settlement. In April, the court agreed to temporarily pause proceedings after the parties disclosed the potential for settlement.
Proposed Settlement and Terms
In a June 16 filing, the SEC stated that both parties had reached an agreement in principle. If the court grants a positive ruling, it would allow the injunction against Ripple to be lifted and modify the $125 million penalty. The settlement proposal involves splitting the current penalty, with $50 million going to the SEC and the remainder returned to Ripple. Both sides are expected to file a joint motion for these changes if the court gives a favorable indication.
Market Impact and Next Steps
The resolution of this case could have broader implications, including the potential approval of a spot XRP exchange-traded fund. Market analysts still estimate an 85% chance of approval this year. Despite a failed settlement attempt in May, the parties quickly reached a revised deal with a change in SEC leadership.
Therefore, the ongoing legal dispute between Ripple and the SEC may be on the verge of resolution, which could bring significant changes for both the company and the cryptocurrency market as a whole.
