Ripple and SEC Clash Again: Both Push to Pause Appeal Amidst Settlement Talks

Breaking News: Settlement In Sight?

Hang on to your hats, crypto fans! The U.S. Securities and Exchange Commission and Ripple Labs are making headlines again, this time begging the U.S. Court of Appeals for the Second Circuit to hit pause on their rollercoaster of an appeal. The latest twist? A June 17 shout-out on X from defense attorney James K. Filan, revealing that the drama continues as they await a game-changing motion from the district court that could usher in a blockbuster settlement and shake up the final judgment!

Details Emerge: A Deal on the Horizon?

Hold your breath, folks! In a bombshell June 16 filing that Filan shared, the SEC spilled the beans: both parties have sealed a final agreement in principle and are now biting their nails for an "indicative ruling" from the district court. If the stars align, this ruling could smash the injunction against Ripple to smithereens and slash the hefty $125 million penalty from last year into pieces.

The plot thickens with a motion that followed an April order where the appeals court hit the brakes on proceedings after whispers of a possible settlement surfaced. Now, the SEC's on the clock, set to drop a new status report by August 15.

What's In The Settlement?

Get this: the proposed settlement isn't just fluff. It's the real deal, aiming to wipe the injunction against Ripple off the map and rejigger the civil penalty. That $125 million currently chilling in escrow? It's about to get split, with $50 million headed to the SEC and the rest boomeranging back to Ripple. Both sides are ready to tag-team a joint motion if the court flashes them a thumbs up.

A Long Battle Nears Its End?

This saga's been brewing since 2020 when the SEC slammed Ripple with a lawsuit for allegedly hawking unregistered securities. Fast forward to July 2023, a federal judge threw Ripple a bone, ruling that their programmatic sales were A-OK but slapped them for institutional sales. The penalty's been hanging out in escrow throughout this wild appeal ride.

An earlier stab at settling in May 2025 crashed and burned when the court said "no dice" on "exceptional circumstances." But with the SEC now rocking new leadership and tweaking its crypto enforcement game, these two managed to whip up a fresh deal in no time!

What's Next For XRP?

Buckle up, XRP fans! The resolution of this case could send shockwaves, maybe even green-lighting a spot XRP exchange-traded fund. A bunch of big shots like Grayscale and ProShares are in the wings, waiting for the go-ahead as deadlines loom this June.

Over on Polymarket, the odds just took a nosedive to 88% after soaring to 98% early in June. Meanwhile, Bloomberg's number crunchers are still holding firm, pegging an 85% chance of approval before the year's out.