Key Insights: Ripple Labs' XRP Lawsuit Continues to Evolve as New Developments Emerge

Ripple Labs' long-running XRP lawsuit continues to evolve as new developments emerge. The XRP company is actively pursuing a settlement and an indicative ruling to

Key Insights:

Ripple Labs’s (CRYPTO: XRP) long-running lawsuit with the Securities and Exchange Commission (SEC) continues as the crypto behemoth seeks to settle the case and obtain an indicative ruling for future private placement and IPO prospects.

After the U.S. Court of Appeals decided to halt all pending appeals, both parties began discussing a possible settlement.

Also, Oregon’s Attorney General sued Coinbase (NASDAQ:COIN) over XRP and several other tokens, which were allegedly sold as unregistered securities.

What Happened:

After the U.S. Court of Appeals decided to stay all pending appeals in the case, both the SEC and Ripple have been discussing a possible settlement.

The crypto firm is also applying for an indicative ruling from the District Court to approve private sales of XRP without any future SEC registration.

This step is crucial for Ripple’s broader plans, which include the possibility of an upcoming initial public offering (IPO).

“The parties have been engaged in discussions regarding a possible settlement of the action. In light of these discussions, the parties agreed that the appeals should be stayed,” a joint statement from both parties read.

Pointing out the need for the ruling, Ripple’s attorney James Farrell said that they would like to have the District Court modify its existing judgment.

This modification would permit Ripple to sell XRP in private placements without needing new registration with the SEC, a step that is pertinent for any future IPO plans.

Without this adjustment, Farrell stated that it could take several more years for Ripple to complete its journey toward a public market debut.

To achieve this, Ripple intends to submit a settlement offer to the SEC and request Judge Analisa Torres to issue an “indicative ruling” on the District Court’s decision.

If the SEC agrees to the proposed settlement terms and Judge Torres grants the ruling, Ripple will then file a formal motion with the District Court to enjoin the SEC’s claims.

According to Farrell, the District Court would take about six months to issue its decision, and the subsequent dismissal appeals through the appellate level would take an additional month.

However, if Judge Torres denies Ripple’s request for modification, the parties might continue litigating, which could ultimately delay Ripple’s IPO prospects until 2027.

What’s More:

The U.S. Court of Appeals decided to mutually agree with the SEC and Ripple to suspend both of their simultaneous appeals.

This decision allowed both parties to concentrate on their pending settlement discussions without the urgency of ongoing appellate proceedings.

Moreover, the court demanded that the SEC report its progress toward reaching a settlement agreement with Ripple in periodic filings to the court, to be submitted sixty days from the date of the appeals stay.

The court’s move signaled its support for reaching an out-of-court settlement between these parties.

The digital asset industry has been closely following the case, especially after recent developments related to a potential settlement drew the attention of the market.

The price of XRP, the native token of Ripple, has been reacting to the ongoing legal developments.

The top altcoin maintained its strong position as it is currently trading at $2.18, despite the prevailing market volatility.

Analysts are expecting a breakout in the altcoin price once the lawsuit is settled and the crypto behemoth completes its IPO plans.

Recently, Oregon’s Attorney General, Dan Rayfield, filed a lawsuit against Coinbase (NASDAQ:COIN) for allegedly selling XRP and over 30 other digital tokens as unregistered securities in violation of Oregon state law.

This action brought an additional legal challenge to Ripple.

The lawsuit is part of broader efforts by the Oregon Department of Justice to fill what it sees as a regulatory vacuum left by federal agencies in policing the fast-growing crypto sector.