Ripple vs SEC Appeal Paused, Next Steps Unclear

The United States Court of Appeals for the Second Circuit has officially placed the appeal in the Securities and Exchange Commission (SEC) case against Ripple on hold. This development marks another significant shift in the long-running legal battle that has shaped regulatory discourse surrounding cryptocurrencies, particularly the classification and treatment of XRP.

The court order, dated April 16, 2025, confirms that the SEC and Ripple jointly requested the appeal be held in abeyance. The court granted the motion, effectively pausing all proceedings in the Second Circuit. The SEC agreed to withdraw its appeal against Ripple weeks ago, and the community has been waiting for an official announcement from the regulator or a court ruling. While this halts immediate litigation activity, it does not conclude the case. The pause introduces a waiting period during which the SEC must submit a status report within 60 days, providing an update on the agency’s position and the potential next steps.

Prominent attorney Fred Rispoli, who has closely followed the case, weighed in following the order’s release. According to Rispoli, the next development will likely occur in the district court, and he expects to see a filing soon that could seek to modify the prior summary judgment ruling issued by Judge Analisa Torres. Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, previously revealed that the SEC agreed to lower Ripple’s penalty from $125 million to $50 million, and the regulator will ask the court to lift the injunction preventing the company from selling tokens to institutional investors.

For XRP holders, this temporary pause does not provide immediate closure but has brought the legal battle closer to its official end. The legal uncertainty surrounding XRP has been lifted, and many retail and institutional investors are waiting for an official dismissal of the lawsuit before re-entering the XRP market. While they wait, XRP is already making significant progress. Teucrium recently launched the first XRP leverage ETF in the U.S., marking the most successful launch in the company’s history. With more ETFs and increased institutional adoption, XRP could experience a massive breakout in the short term.