The joint motion seeks to resolve remaining legal disputes by releasing $125 million held in escrow since 2020, potentially ending seven years of litigation. This development follows Ripple’s partial victory in 2023 when a court ruled XRP isn’t inherently a security. The funds release could enable Ripple to accelerate product development and partnerships.
Legal experts view this as a strategic move to avoid costly appeals and regulatory uncertainty ahead of potential IPO plans. The motion requires court approval but signals both parties’ willingness to compromise. Remaining issues include final settlement terms and operational restrictions on Ripple’s institutional sales.
Market reaction has been cautiously optimistic, with XRP gaining 2.3% post-announcement. A full resolution could improve Ripple’s banking partnerships and position XRP as a bridge currency in CBDC networks. However, SEC Chair Gary Gensler’s stance on crypto regulations remains a wild card for broader industry implications.
