Ripple,SEC Pause Appeal,Boosting XRP ETF Hopes

In a significant development, the United States Securities and Exchange Commission (SEC) and Ripple Labs have jointly filed a motion to pause the appeal process in their protracted legal battle. This move follows an agreement between the two parties to settle the case, which is now awaiting final approval from the court. The joint motion, submitted to the US Court of Appeals for the Second Circuit, requests that the appeal be held in abeyance until the court approves the settlement terms. This decision aims to conserve resources for both parties, as they have agreed not to take further action in the case.

The timing of this motion coincides with a recent leadership change at the SEC, with Paul Atkins confirmed as the new chair of the commission. Former SEC attorney Marc Fagel suggested that the delay in the appeal process may be related to this leadership transition. Fagel speculated that the SEC might have wanted Atkins in position for the upcoming vote, noting that having him participate on his first day could be significant. This move avoids any risk of Ripple pulling back from submitting a brief and potentially derailing the process.

Attorney Bill Morgan raised a question that is on many minds: does the mention of an “indicative ruling” mean the judge is just finalizing the settlement? And does that include removing the injunction against Ripple, which hasn’t been mentioned yet? Fagel responded, saying we’re in uncharted territory here. He interpreted the language to mean the settlement is contingent on Judge Torres revisiting the injunctive order. If she refuses to modify it, then the appeal — and possibly Ripple’s cross-appeal — could still move forward.

All in all, while this case seems to be nearly over, a few key pieces still need to fall into place. Until the SEC signs off and the court weighs in, Ripple supporters will be watching closely — hoping this really is the end of one of crypto’s biggest legal battles. The pause in the appeal process has boosted optimism for the approval of an XRP-spot ETF and Ripple's business expansion in the US. The withdrawal of the appeal may hinge on Judge Torres vacating the XRP ruling, which could pave the way for a more favorable regulatory environment for Ripple and the broader cryptocurrency industry. The joint motion to pause the appeal is a significant development in the long-standing legal standoff between Ripple Labs and the SEC, and it reflects a potential shift in the regulatory landscape for cryptocurrencies.