Ripple,SEC Seek 60-Day Pause in Legal Battle, Settlement Likely

Ripple and the U.S. Securities and Exchange Commission (SEC) have made a notable advancement in their protracted legal dispute. The two parties have jointly submitted a motion to a U.S. Appeals Court, seeking to pause any further appeals and cross-appeals. This action is interpreted as a precursor to a formal settlement, which both parties are inclined to reach. The filing suggests that any additional procedural developments could take up to 60 days, although the outcome is largely expected to be predetermined.

The SEC vs. Ripple case has been one of the most pivotal legal battles in the cryptocurrency industry over the past few years. The Commission had initially sued Ripple for the distribution of XRP tokens, alleging violations of securities laws. However, the Commission dropped its lawsuit last month, marking a significant shift in the case. The recent joint motion by Ripple and the SEC addresses one of the remaining loose ends in the case: Ripple’s cross-appeal, which was filed last October. With this new joint motion, the two parties have reached an agreement-in-principle to resolve all outstanding issues, including the SEC’s initial appeal, the cross-appeal, and any other claims involving individual actors.

The joint motion also mentions that further progress may take another 60 days. When they completely finalize a settlement, it could likely have landmark implications for U.S. crypto policy. The way that the SEC is improving relations with Ripple, Coinbase, Kraken, etc., suggests a favorable outcome seems extremely likely.

The legal battle between Ripple and the SEC has been closely watched by the cryptocurrency community, as the outcome could set a precedent for how digital assets are regulated in the United States. The SEC's decision to drop its lawsuit and the subsequent joint motion by both parties indicate a willingness to find a mutually beneficial resolution. This development could pave the way for clearer regulatory guidelines for the cryptocurrency industry, potentially fostering greater innovation and investment in the sector.