Ripple and SEC Request 60-Day Pause on Appeals, Hinting at Possible Settlement
Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have jointly filed a motion to pause their appeals in the long-running legal battle over XRP, a move widely interpreted as a step toward reaching a final settlement. In an April 10 court filing, both parties requested that the case be held in abeyance for 60 days, citing ongoing settlement discussions. “An abeyance would conserve judicial and party resources while the parties continue to pursue a negotiated resolution of this matter,” the filing stated.
Ripple CEO’s March Remarks Foreshadow Pause in SEC Case Proceedings
The pause in proceedings follows Ripple CEO Brad Garlinghouse’s recent remarks in March, suggesting the case was nearing its end. The timing of the filing has fueled speculation that the SEC may be waiting for its incoming chair, Paul Atkins, to officially assume office before finalizing a settlement. Ripple defense attorney James Filan confirmed that the abeyance request overrides the previous April 16 deadline for Ripple to respond to a brief the SEC filed in January. “The settlement is awaiting commission approval. No brief will be filed on April 16,” Filan stated on X.
The SEC’s willingness to pause appeals has been interpreted by some legal commentators as a signal that the agency may be preparing to drop the case under new leadership. One community member noted that a settlement led by Atkins would mark a “huge win” and potentially reset the SEC’s approach to crypto regulation. Atkins was confirmed by the Senate as SEC Chair on April 9, but it remains uncertain when he will be officially sworn in. For context, former SEC Chair Gary Gensler assumed office three days after his confirmation in 2021, suggesting Atkins could take over as soon as April 12. The XRP case, which began in December 2020, has been one of the most closely watched legal battles in the crypto industry.
Trump-Era Shift Signals SEC Reassessment of Crypto Regulation
The SEC’s recent shift in tone under President Donald Trump reflects a broader effort to reevaluate the agency’s approach to digital assets. SEC’s Mark Uyeda announced on April 5 that, in line with Trump’s deregulation agenda and guidance from the Department of Government Efficiency (DOGE) led by Elon Musk, the SEC is reviewing seven staff-issued statements—five of which concern cryptocurrencies.
Among those under review is a 2019 framework from the SEC’s FinHub that assessed when digital asset sales could qualify as investment contracts under the Howey test. Other documents being reconsidered include statements from the Divisions of Investment Management, Corporation Finance, and Examinations, particularly those addressing risks tied to Bitcoin futures, crypto custody, and industry-wide bankruptcies during 2022. As reported, the SEC announced new guidelines on April 4, stating that certain fiat-backed stablecoins will be classified as “non-securities,” thereby exempting them from transaction reporting requirements.
