In a new twist to their ongoing legal saga, Ripple Labs and the U.S. Securities and Exchange Commission have together requested a pause on their appeals. Why? They’re trying to hash out a “negotiated resolution” to their drawn-out court battle.

According to a filing submitted just yesterday to the U.S. Court of Appeals for the Second Circuit, it seems the two sides have already found some common ground and reached an agreement in principle. If you recall, Ripple CEO Brad Garlinghouse hinted last month that the SEC might just drop its appeal.

This latest filing is the official nod confirming that the SEC is indeed moving to drop its appeal, which was initially lodged in October. It also confirms that Ripple is on the same page, seeking to withdraw its cross-appeal as well.

However, the document also points out that this “agreement in principle” isn’t quite final yet, as it still needs to get the official green light from the SEC.

“The parties require additional time to obtain Commission approval for this agreement-in-principle, and if approved by the Commission, to seek an indicative ruling from the district court,” the filing states. Both legal teams have signed off on this, indicating a united front.

Some believe that the final go-ahead from the SEC might be pending until Trump’s nominee, Paul Atkins, steps into the chairman role. He was confirmed by the Senate on Wednesday, so his swearing-in and potential influence on this case could be just around the corner.

Ripple vs the SEC

SEC approval of this agreement would effectively close the chapter on a legal battle that began back in December 2020. That’s when the regulatory body first sued Ripple, alleging they had been selling unregistered securities since 2013, raising a whopping $1.3 billion.

In July 2023, Judge Analisa Torres handed Ripple a significant victory, ruling that the sales of XRP on exchanges to the general public were not considered offers of unregistered securities.

However, the SEC wasn’t ready to back down and filed the aforementioned appeal over a year later. They argued that Ripple’s direct sales of XRP on exchanges, along with XRP sales by top execs Brad Garlinghouse and Christian Larsen, did indeed violate securities laws.

With this appeal potentially being dropped, the price of XRP could see a continuation of its upward movement, which began after Donald Trump’s election on November 5.

Since that date, XRP has skyrocketed by 300%, largely driven by the anticipation that a more crypto-friendly administration could bring an end to the Ripple-SEC dispute.

But, it’s worth noting that with gains this big, the resolution of the case might already be factored into the price. Despite today’s positive news, XRP has only edged up by about 0.2% in the last 24 hours, according to data from CoinGecko.