Ripple vs SEC Appeal Paused, Status Report Due in 60 Days

The United States Court of Appeals for the Second Circuit has formally approved a joint motion by the U.S. Securities and Exchange Commission (SEC) and Ripple Labs, Inc. to place the ongoing appeal on hold, granting a temporary abeyance. The order, signed by Clerk of Court Catherine O’Hagan Wolfe and issued under Circuit Judge José A. Cabranes, requires the SEC to submit a status report within 60 days of the order.

The appellate case, docketed under Nos. 24-2648(L) and 24-2705(XAP), involves the SEC’s appeal and Ripple’s cross-appeal in the broader enforcement action originally brought by the Commission in December 2020. The defendants include Ripple Labs and its executives, Bradley Garlinghouse and Christian A. Larsen. Several individual XRP holders, represented by attorney John Deaton, are listed as intervenors.

Defense lawyer and former federal prosecutor James K. Filan, a prominent figure in the XRP legal commentary space, reported the development on X, stating: “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.” His post included a direct image of the court order, confirming the procedural pause in the appellate process.

The ruling confirms earlier reporting that both parties had agreed to temporarily halt proceedings. Such a move often suggests that both sides are either considering settlement or reevaluating the course of litigation, though no official statements to that effect had been made.

Public reaction from the XRP community to the court’s approval of the motion has been mixed. Some expressed frustration with the pace of litigation, while others offered a more optimistic view, possibly alluding to expectations of a policy shift within the Commission. Another comment described the decision as “One step closer and one step to the end!! It now goes back to SEC to approve and BE DONE!!!” indicating hope that the pause in the appeal process might signal a resolution on the horizon.

While the appellate court’s order does not alter the fundamental legal questions at the heart of the SEC’s enforcement case against Ripple, it does represent a significant procedural moment. The abeyance provides both sides additional time for potential negotiation or reassessment without the pressure of immediate appellate deadlines. The next milestone in the case is now tied to the SEC’s obligation to submit a status report within 60 days. Until then, the community and observers will be closely watching for any indications of settlement talks, strategic shifts, or administrative developments that could influence the outcome of one of the most closely watched crypto enforcement actions in U.S. history.