XRP News Today: Ripple and SEC Seek 60-Day Pause in Legal Battle Over XRP

Ripple Labs, Inc. and the U.S. Securities and Exchange Commission (SEC) have jointly requested a 60-day pause in their appeal proceedings, extending the legal uncertainty surrounding the case until August 15, 2025. This delay is aimed at allowing Judge Analisa Torres to rule on a motion to modify the existing judgment, which was filed earlier this month. The motion seeks to alter or dissolve parts of the previous final judgment, potentially releasing $50 million from the $125 million penalty amount currently held in escrow to the SEC, while the remaining funds would be returned to Ripple. The parties argue that there are unusual circumstances justifying the change in the existing judgment, including an agreement between the sides, a shift in the SEC's attitude towards crypto regulation, and a mutual desire to avoid a lengthy court battle.

The SEC's request to pause its appeal in the Ripple case was made due to a pending motion in the district court. The motion, filed with the U.S. Court of Appeals for the Second Circuit, seeks to hold the appeal and cross-appeal in abeyance for an additional 60 days. This request follows a previous agreement between Ripple and the SEC aimed at resolving their long-standing dispute over the sale of XRP. However, this latest filing does not impact the timeline for the ruling on the joint motion submitted to the district court earlier this month.

Legal experts have indicated that Judge Torres could issue a decision within days, contrary to the SEC's request for an extension of the abeyance period for the appeal process. This speculation has led to the possibility that the case could conclude as early as June. Pro-XRP attorney Bill Morgan clarified the implications of the SEC’s filing, stating that the SEC's request does not delay the decision on the joint motion filed last week until August. Instead, the SEC is seeking to extend the period in which the appeal and cross-appeal are held in abeyance for an additional 60 days. Morgan emphasized that the decision by Judge Torres on the joint motion could be delivered in days.

Attorney James K. Filan provided further insight, noting that the SEC's submission to the Second Circuit aims to pause appellate proceedings while a motion under Federal Rule of Civil Procedure 60 remains pending. This motion seeks an indicative ruling by the district court to potentially alter or dissolve parts of the previous final judgment. The next procedural milestone hinges on Judge Torres’ decision on the joint motion. Legal observers emphasize that Judge Torres' decision on the resolution of the motion at the district level could come at any moment. The next official update of the appeals process is scheduled for August 15, when the SEC is to submit another status report to the appellate court.

This joint pause request matters as it may lead to a swift resolution, impacting Ripple's market positioning and regulatory clarity. The ongoing legal scenario affects Ripple, XRP holders, and potentially paves the way for securities clarity that could alter digital asset trading conditions in the U.S. Financial discussions reveal that $50 million from the civil penalty may soon be released to the SEC, easing financial tensions at Ripple. This coordination between Ripple and the SEC may inspire regulatory approaches impacting other crypto assets, like Ethereum (ETH), under similar scrutiny.

Should the SEC approve an XRP ETF post-settlement, economic impact and trading volumes could rise. Historical trends indicate that successful settlements generally lead to brief market rallies and regulatory shifts in the broader cryptocurrency landscape. Regulatory and technology implications for Ripple and its peers could alter perspectives on cryptocurrency securities statuses, with judgments contributing to longer-term stability. The broader crypto industry awaits these outcomes with heightened anticipation.