The ongoing legal battle between the US Securities and Exchange Commission (SEC) and Ripple Labs has taken a significant turn as both parties have agreed to pause their appeals in the XRP lawsuit. This development hints at a potential resolution and paves the way for what could be a historic settlement in the cryptocurrency industry.
In a joint motion filed on April 10, the SEC and Ripple stated that their appeals would be placed in abeyance, a legal term that indicates that proceedings are temporarily suspended. The parties emphasized that this approach is designed to conserve both judicial resources and the efforts of involved parties while they work toward a negotiated resolution of the XRP case.
Ripple’s CEO, Brad Garlinghouse, previously hinted at the end of the XRP case during a statement made on March 19. This recent filing suggests that the SEC is likely to seek a settlement after newly appointed SEC Chair Paul Atkins officially assumes office. Legal experts speculate that the SEC’s agreement to pause the case may reflect the agency’s readiness to drop the lawsuit against Ripple, especially as it prepares to enter a new leadership phase with Atkins at the helm.
Moreover, the filing has effectively canceled Ripple’s previous deadline of April 16 to respond to the SEC’s brief submitted back in January. James Filan, Ripple’s defense attorney, stated, “The settlement is awaiting commission approval. No brief will be filed on April 16,” a clear indication that developments in this case are moving rapidly.
Speculation surrounding the timing of Atkins’ official inauguration as Chair has also been a point of discussion. While the Senate confirmed his nomination on April 9, it remains unclear when he will officially take office. Previous SEC Chair Gary Gensler was sworn in just three days following his confirmation in 2021, setting a possible precedent for Atkins to be in office by April 12.
In summary, the collaborative decision by the SEC and Ripple to pause legal proceedings showcases a mutual interest in resolving the XRP case outside court. This significant moment in cryptocurrency regulation may not only impact Ripple but also set implications for the larger blockchain landscape. As the community eagerly awaits further developments, all eyes will be on the upcoming actions of newly appointed Chair Paul Atkins.
