- SEC and Ripple pause legal battle to finalize settlement, update due by June 9
- New SEC Chair Paul Atkins may accelerate a crypto-friendly resolution with Ripple
- XRP ETF filings gain momentum as settlement signals clearer regulatory landscape
In a significant development for the long-running legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs, the U.S. Court of Appeals for the Second Circuit has granted a joint motion Wednesday to pause the appeal in their case.
This decision allows both parties to focus on finalizing a settlement agreement that could bring an end to their multi-year dispute. As part of the court order, the SEC must submit a status report within 60 days, by June 9, to update the court on the progress of the settlement talks.
Why is Pausing the Appeal a Positive Step for Settlement?
Putting the appeal “in abeyance,” as this pause is known, marks a hopeful turn. Both the SEC and Ripple have been negotiating an agreement-in-principle, signaling a possible resolution to the legal uncertainty that has plagued Ripple and its cryptocurrency, XRP.
The appeal had remained a major hurdle, but now, both sides seem poised to move past litigation and work toward a resolution. The pause in the appeal gives them the necessary space to finalize the details of the settlement without the pressure of ongoing court proceedings.
Related: SEC Actions Across Binance, Ripple Suggest Coordinated Resolution Push
The court’s order, signed by Circuit Judge José Cabranes on April 16, ensures that the SEC remains accountable. By mandating a progress update in two months, the court ensures that the settlement talks are moving forward.
Could New SEC Chair Paul Atkins Influence the Outcome?
A crucial factor in this potential settlement is the recent confirmation of Paul Atkins as the new SEC Chair. Atkins, generally viewed as having a more pragmatic stance on crypto than his predecessor, might play a role in steering the agency towards approval.
Since his confirmation on April 9, speculation has grown that the SEC may finally be ready to move on from the litigation. However, internal approval is still required, and a vote by the SEC Commissioners will determine if the settlement is formalized.
Once the agreement is approved, both parties are expected to request the dismissal of the appeal. They might also seek court approval to revise or clarify parts of the original district court ruling by Judge Torres.
What Does This Mean for XRP Investors and ETF Hopes?
Crypto analyst John Squire believes the pause in the appeal and the potential settlement signal major shifts in the market. Institutional investors, he notes, are already positioning themselves in anticipation of a more favorable regulatory environment for XRP.
Related: Ripple vs. SEC: The Endgame is Near – Could This Mark the Final Chapter?
Moreover, the possibility of an XRP exchange-traded fund (ETF) is gaining traction, with several firms, including Bitwise, Grayscale, and ProShares, already filing applications. A settlement could accelerate this process, propelling XRP to new heights in the crypto market.
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