The U.S. Court of Appeals for the Second Circuit has officially paused the SEC’s appeal against Ripple. The court issued the suspension on April 16, following a joint request from both parties. This move signals a possible settlement between Ripple and the SEC.
Judge José A. Cabranes approved the request, effectively halting all appellate brief filings. Neither party will take further legal steps until the court lifts the pause.
Status Report Due by Mid-June
The court ordered the SEC to submit a status update by June 15. The report will inform the court whether the SEC and Ripple have resolved the case or wish to continue the appeal. This update will determine the next phase in this long-running legal battle.
At the heart of the pause is a tentative agreement between Ripple and the SEC. According to the proposed terms, the SEC would drop the permanent injunction and reduce Ripple’s fine from $125 million to $50 million. However, this agreement requires approval from SEC commissioners before it can proceed.
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Once the SEC approves the deal, both parties plan to file a joint motion with U.S. District Judge Analisa Torres to remove the injunction and finalize the reduced penalty.
Background on the Case
Judge Torres had earlier ruled that Ripple violated U.S. securities laws. The ruling included a permanent injunction, which barred Ripple from conducting institutional XRP sales without prior SEC clearance. This restriction significantly affected Ripple’s U.S. operations, especially its cross-border payment services.
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Attorney Fred Rispoli commented on the latest development. He believes the case could end as early as May 25, bringing closure to a legal fight that began in December 2020.
If the SEC agrees to the revised terms, Ripple could return to offering XRP-based solutions more freely in the U.S. Removing the injunction would ease regulatory pressure and help the company regain momentum.
