SEC and Ripple Agree to Pause Appeals in Ongoing XRP Legal Battle, Signaling Potential Move Toward Final Settlement

The US Securities and Exchange Commission and blockchain payments firm Ripple agreed to pause their appeals in the ongoing XRP legal battle

The US Securities and Exchange Commission and blockchain payments firm Ripple have agreed to pause their appeals in the ongoing XRP legal battle, signaling a potential move toward a final settlement.

The SEC and Ripple agreed to put their appeals in “abeyance,” meaning the proceedings are now paused pending an anticipated settlement of the XRP (XRP) case.

“An abeyance would conserve judicial and party resources while the parties continue to pursue a negotiated resolution of this matter,” the parties jointly stated in an April 10 court filing.

"The parties continue to discuss a negotiated resolution of this matter. Commencing appeals while discussing settlement would expend judicial and party resources.

"An abeyance of the appeals would conserve such resources and is consistent with the parties' shared interest in efficient resolution of this litigation. Accordingly, the parties respectfully request that the Court place the appeals in abeyance pending further notice from the parties." - Motion for Place Appeals in Abeyance

The filing comes after Ripple CEO Brad Garlinghouse previously announced the end of the XRP case on March 19, and the new filing hints that the SEC is ready to settle once nominated and approved Chair Paul Atkins takes office, according to some community speculation.

The filing cancels Ripple's April 16 brief deadline

According to Ripple’s defense attorney, James Filan, the new filing supersedes the April 16 deadline for responding to the SEC’s brief filed in January. “The settlement is awaiting commission approval. No brief will be filed on April 16,” Filan wrote in an April 10 X post.

Some legal observers suggested that the SEC’s willingness to pause the proceedings indicates that the agency may be prepared to drop the case after Chair Paul W. Atkins takes office.

"The fact that the SEC is willing to pause the appeals signals that they may be prepared to drop the case entirely. This is a surprising turn of events considering the administration's strong interest in pursuing legal matters related to cryptocurrencies."

When is Chair Paul W.Atkins expected to officially assume office?

While the Senate confirmed the new SEC chair on Wednesday, April 9, it's unclear when he will take office. It could be several days before Chair Paul W.Atkins is sworn into office.

Former SEC Chair Gary Gensler was sworn into office three days after his confirmation in 2021, suggesting that Chair Paul W.Atkins could take office as soon as April 12.

Cointelegraph approached the SEC for comment on when Chair Paul W.Atkins is expected to be sworn into office but had not received a response by the time of publication.