SEC vs. Ripple Appeal Paused
SEC vs. Ripple Appeal Paused: Settlement Nears
The US Court of Appeals for the Second Circuit has paused the appeal in the SEC v. Ripple Labs case. This follows a joint motion by both parties, indicating progress towards a final settlement agreement.
Key Takeaways
- The appeal is officially "in abeyance" (on hold) pending settlement finalization.
- This case sets a significant precedent for US digital asset regulation.
- The SEC must submit a status report by June 9, 2025, detailing settlement progress.
According to legal expert James Filan, Circuit Judge José Cabranes signed the court order on April 16, 2025. This action reflects the mutual agreement between the SEC and Ripple to resolve their dispute.
While Ripple has publicly confirmed the SEC's intention to drop the appeal, the agreement still requires internal SEC approval, including a vote by the newly appointed Chair, Paul Atkins, and other Commissioners. Atkins, confirmed on April 9, 2025, is considered crypto-friendly.
Upon formal SEC approval, both parties will jointly move to dismiss the appeal. The settlement terms may necessitate a further motion to Judge Torres in district court to revise or clarify the original judgment.
Impact and Implications
The outcome of this case will have a profound impact on how digital assets are regulated in the US. The resolution will influence future cases involving similar legal challenges, particularly those concerning the classification of cryptocurrencies as securities.
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