Ripple-SEC, Appeal process suspension approved...60 days grace period
The long legal dispute between the United States Securities and Exchange Commission (SEC) and the blockchain company Ripple is entering its final stages. Both parties have agreed to temporarily suspend the appeal process and will enter negotiations for a final agreement over the next 60 days. This increases the likelihood of concluding the so-called ‘Ripple incident’ that has continued since 2020.
On the 16th (local time), the U.S. Court of Appeals for the Second Circuit approved the joint request to suspend the appeal process submitted by Ripple and the SEC. This measure is the result of negotiations following the SEC's announcement in March to withdraw the appeal against Ripple. The Ripple side also agreed to withdraw the cross appeal of a retaliatory nature and is expected to receive a court ruling refund amounting to approximately $75 million as part of the procedure.
According to this decision, the SEC must submit a report on the progress of negotiations to the court by June 15. Independent attorney James Filan stated that "both sides have left open the possibility of an agreement and requested a temporary suspension to reduce unnecessary legal costs and time consumption.”
Both parties are expected to suspend all court appearances related to the appeal and attempt an official agreement within the next few weeks. However, there are still some administrative barriers remaining before the procedure is fully concluded.
The SEC is currently waiting for the official inauguration of Paul Atkins, who has been nominated as the next chairman. President Trump passed Atkins’ nomination through Senate confirmation on April 9, but the official succession to the chairmanship has not yet occurred. According to SEC internal regulations, the current chairman’s authority to sign major agreements is limited until a formal appointment is made.
Atkins has already passed the hearing, and his official inauguration is expected within a few days, although there is a possibility of procedural delays. He was embroiled in a conflict-of-interest controversy after it was confirmed that he invested in multiple cryptocurrency companies during the asset disclosure process, but passed the nomination without significant opposition.
Meanwhile, Ripple donated $5 million in XRP to President Trump’s inauguration fund last March and strengthened its relations with the political sphere with CEO Brad Garlinghouse and legal officer Stuart Alderoty attending major events. As the SEC has shown a conciliatory trend in recent lawsuits with major cryptocurrency companies like Binance, the possibility of an early conclusion to the Ripple case is growing stronger.