- Ripple may settle SEC case for $50M, down from $125M, pending Commission approval.
- SEC could withdraw its Ripple appeal by April 16 as both sides near a settlement deal.
- Emergency filing by Keener adds new complexity, but settlement talks remain on track.
The long-running legal battle between Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC) may soon reach its conclusion, with a possible settlement or a final court move expected by April 16. After more than three years of legal proceedings surrounding the sale of Ripple’s XRP token, recent developments suggest both parties are nearing an agreement that could resolve one of the most closely watched cases in the crypto market.
Ripple is expected to pay a reduced settlement of $50 million, down from the $125 million fine originally imposed by the SEC. However, this outcome is subject to final approval by the Commission, which has not yet issued a public confirmation.
On April 10, the SEC and Ripple legal teams jointly filed a motion in the U.S. Court of Appeals for the Second Circuit requesting a pause in the ongoing litigation. The filing, including Ripple executives Brad Garlinghouse and Christian Larsen, noted that both sides had agreed in principle.
According to the document, the agreement is intended to resolve the underlying case, the SEC’s appeal, and Ripple’s cross-appeal. The parties requested additional time to obtain formal Commission approval for the deal and, if granted, to seek a ruling from the district court to finalize the matter.
Settlement Could Return $75 Million to Ripple
Sources close to Ripple indicated that under the proposed settlement, the SEC would return $75 million from the initial fine imposed last year. This would leave Ripple with a remaining payment of $50 million to conclude the case. The SEC has yet to make any official statement confirming these details. Historically, the Commission has often worked privately on settlements before issuing public announcements.
Legal expert Fred Rispoli, who has closely monitored the case, estimated a 90% chance that the SEC will withdraw its appeal or finalize a settlement by April 16. This date falls in line with Ripple’s filing deadline of its appellate brief. Rispoli noted that there is only 10% probability that Ripple will go ahead with the filing implying that there is increasing likelihood of an announcement of the settlement shortly.
Recent Filing Adds Complexity to Legal Battle
Despite the progress toward a resolution, a recent filing by Justin W. Keener introduced new complications to the proceedings. Keener submitted an emergency request to Judge Analisa Torres, seeking to present evidence he claimed would support Ripple’s defense and promote financial freedom for the American public.
The SEC opposed this filing on several grounds. It argued that the District Court lacked jurisdiction over the matter, as the case had already been transferred to the Second Circuit. In addition, the agency has added that Keener failed to adhere to the correct course of action in the filing of the motion to intervene. Based on this declaration, the SEC also said that Ripple could determine if the offered evidence by Keener was relevant to its defense.
Timeline of Appeals and Possible Resolution
Ripple responded to the SEC’s October 3 appeal with its cross-appeal. However, the latest motion to pause proceedings left legal documents scheduled through April 2025. However, it was agreed that each party will not pursue any such appeal, and the above settlement will not be made if it is not agreed by both parties. This disposed both the appeal and the cross-appeal and ordered that the agency file a status report within the next 60 days after the stay order was issued.
