A new phase has emerged in the ongoing legal dispute between Ripple
$
Long-standing Litigation Reaches a New Stage
The conflict between Ripple and the SEC began in December 2020 when the SEC characterized Ripple’s sale of XRP tokens as an unregistered security. While the SEC argued that XRP should be subject to regulatory oversight as a security, Ripple countered that XRP functions as a currency, thus falling outside the SEC’s jurisdiction. This fundamental disagreement ignited a wider debate on how regulations should be applied in the cryptocurrency market. Despite various interim rulings over the years, the case has continued without reaching a final resolution. However, the current request to suspend the appeal process indicates that both parties are open to out-of-court resolution options. Shared information suggests that Ripple and the SEC have reached an “equitable principle agreement,” indicating that certain core points of contention have been clarified to some extent.
Negotiations Increase Likelihood of Agreement
According to the filing presented to the court, the request to suspend the appeal process also encompasses allegations against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen. Should the request be approved, the parties may adopt a more flexible approach at the negotiation table rather than hardening their legal positions. Attorney James Filan stated that the case has reached a stage where “essential matters have been determined.” This remark signifies that an important threshold has been crossed in the legal process. Furthermore, this development is being closely monitored not only for the Ripple case but also for general cryptocurrency market regulations. The SEC had also requested a similar temporary stay in its prior case against the Gemini exchange, suggesting that it may adopt a conciliatory strategy in major cryptocurrency lawsuits. The possibility of a similar roadmap in the Ripple case could increase positive expectations in the market. It is emphasized that any potential agreement between the parties would also be subject to the approval process of the SEC commissioners. This indicates that even if an agreement is reached, it will take time to gain official clarity.
