Ripple Labs and the US SEC have filed a joint motion to pause their ongoing legal proceedings at the court of appeal. In the motion, both teams mentioned that it was necessary to finalize their agreement in principle. According to details, both teams need to discuss the underlying information behind the resolution and it will take time to negotiate one that would be approved by the SEC.
The two main disputes to be resolved include the SEC appeal and the Ripple cross-appeal. “There is good cause for the parties’ joint request that this Court put these appeals in abeyance. The parties have reached an agreement-in-principle, subject to Commission approval, to resolve the underlying case, the Commission’s appeal, and Ripple’s cross-appeal,” the court filing read.
Meanwhile, the parties noted that if the resolution is approved, they will seek an indicative ruling from the court that initially sat on the case. In addition, they feel the process will limit resource use and ensure limited damages are suffered. This means that Ripple is no longer required to file an appeal brief in response to the SEC’s appeal, which was expected on April 16.
Ripple and SEC joint pause motion causes controversies
The news of the joint pause motion filed by Ripple and SEC adds a new regulatory twist to the legal drama that has been ongoing for about four years. While it marks progress and bolsters XRP’s standing, it contravenes the notion that all has been settled and the lawsuit has been dropped. While many believe that the settlement will be approved by the SEC, it still casts a shadow on the status of XRP as an asset.
The price of the token has also been impacted by the notion, with XRP now down about 14% year-to-date and down 4% in the past seven days. Even before the motion, there had been a twist after Justin Keener requested to present crucial evidence that could determine the outcome of the lawsuit. The person refused to provide details about the kind of evidence, leading people to believe it could be spam.
However, the SEC has shut down the filing in a letter to Judge Annalisa Torres, noting that the evidence relates to the court’s summary judgment and ruling on programmatic sales, which is already on appeal. Therefore, the Court cannot entertain any discussion on the matter again. Meanwhile, there is a rumor going on in the XRP community about the timeline, with most people noting that it could be a plan to wait for Paul Atkins to assume his position as SEC chair before the case is dropped. After being confirmed by the Senate, Atkins could resume office anytime soon.