Ripple & SEC Pause Appeal: 60-Day Settlement Push

Ripple and SEC Extend Settlement Talks

The ongoing legal battle between Ripple Labs and the Securities and Exchange Commission (SEC) has taken another turn. A joint motion to pause proceedings on their cross-appeal has been approved, granting both parties 60 additional days to negotiate a settlement.

While a resolution seemed imminent, procedural hurdles remain. For instance, the SEC can't finalize any agreement until Paul Atkins is officially sworn in as Chair. This development highlights the complexities of navigating legal processes within the dynamic crypto landscape.

When Will a Ripple-SEC Agreement Be Reached?

The Ripple vs. SEC case, a major enforcement action under former Chair Gary Gensler, has been nearing conclusion for over a month. The SEC initially signaled its intent to drop the case and subsequently confirmed its commitment. However, a cross-appeal remained. Both parties have proposed a settlement, leading to this recent pause.

According to attorney James Filan, observing the case, "The parties’ joint motion to hold the appeal in abeyance has been granted. The SEC is directed to file a status report within 60 days of this Order."

Ripple and the SEC filed a joint request last week to temporarily halt all court appearances related to the cross-appeal, citing significant progress in their settlement negotiations and a desire to save time and legal costs.

The SEC also made a similar request in its case against Binance, indicating productive settlement talks. However, the Binance filing differed slightly, mentioning broader policy implications.

Obstacles to a Speedy Resolution

• Paul Atkins' Confirmation: While Paul Atkins' confirmation as SEC Chair is complete, his official swearing-in ceremony has yet to occur. This formality is necessary before he can approve any settlement.
• Procedural Delays: Legal proceedings often involve unexpected delays, adding complexities and extending timelines.

Ideally, Atkins would sign the settlement upon assuming office. However, further minor delays remain possible. The crypto industry, known for its rapid pace, must adjust to the slower cadence of legal processes.

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