The US Securities and Exchange Commission (SEC) and payments upstart Ripple Labs have jointly requested a pause in their respective appeals to finalize a potential settlement, per a motion filed on Thursday. A high-profile dispute has gripped the industry since December 2020 over the sale of XRP tokens by Ripple.
The U.S. Securities and Exchange Commission (SEC) and payments upstart Ripple Labs have jointly requested a pause in their respective appeals to finalize a potential settlement, per a motion filed on Thursday.
The Securities and Exchange Commission (SEC) is a US government agency responsible for regulating and supervising the securities industry.
Established in 1934, its primary mission is to protect investors and maintain fair market practices.
The SEC oversees various aspects of the financial sector, including stock exchanges, brokerage firms, investment companies, and public companies.
It enforces federal securities laws, conducts investigations, and imposes penalties for non-compliance.
With a wide range of responsibilities, the SEC plays a crucial role in maintaining investor confidence and ensuring the integrity of the US capital markets.
A high-profile dispute has gripped the industry since December 2020 over the sale of ‘XRP tokens’ by Ripple. The SEC alleged that these tokens were unregistered securities.
Ripple is a real-time gross settlement system (Ripple Labs Inc.), a US-based technology company, developed by Ripple Labs Inc., a US-based technology company.
It enables fast and secure global financial transactions using the Ripple protocol, which facilitates cross-border payments in various currencies.
The 'Ripple protocol' facilitates cross-border payments in various currencies.
The Ripple network uses a consensus mechanism to validate transactions, ensuring speed and accuracy.
XRP, Ripple's native cryptocurrency, serves as a bridge currency for facilitating transactions between different currencies.
The parties have reached an ‘agreement in principle‘ to resolve all outstanding issues, which includes not only the SEC‘s appeal of the district court’s final judgment but also Ripple‘s cross-appeal and the claims against Ripple founders ‘Brad Garlinghouse’ and ‘Chris Larsen’.
The motion requests that the court hold the appeals process in abeyance — effectively pausing it — while the parties hammer out the final terms of the settlement, which still requires formal approval from the SEC‘s commissioners. This follows a similar request from the SEC and Gemini in early April, where the two parties requested the court approve a two-month pause to finalize a deal to close their long-running legal dispute over ‘Gemini’s Earn program’.
The case has been central to debates over the regulatory status of cryptocurrencies in the United States. Ripple argues that XRP is a currency, not a security, and thus outside the SEC‘s jurisdiction. The settlement could have significant implications for how cryptocurrencies are regulated in the U.S., offering a potential end to this high-profile dispute.
XRP, also known as Ripple, is a cryptocurrency and digital payment system.
It was created in 2012 by Jed McCaleb and Chris Larsen.
XRP uses a consensus protocol called the Ripple Protocol to facilitate fast and low-cost transactions between currencies.
The total supply of XRP is capped at 100 billion coins, making it one of the most widely held cryptocurrencies.
XRP is primarily used for cross-border payments and has partnerships with several major banks.
No brief will be filed on April 16th, indicating that the parties are working towards finalizing the terms of the settlement. As the case moves forward, it will be important to follow developments and understand how this agreement impacts the broader cryptocurrency industry.
- coindesk.com | Ripple and SEC File Joint Motion to Pause Appeals
