SEC, Ripple legal battle pause amid Settlement
SEC-Ripple's motion to hold the appeal in abeyance or temporarily halt the case for 60 days was granted by the U.S. Court of Appeals for the Second Circuit in a filing on April 16
Quick overview
- The SEC and Ripple have requested a pause in their ongoing appeal case while settlement discussions are in progress, which has been granted by the appellate court.
- The U.S. Court of Appeals for the Second Circuit approved a 60-day halt to the appeal, requiring a status report from the SEC by June 15.
- Ripple's CEO announced that the SEC would drop its appeal against the company, following a federal court ruling that found Ripple liable for $125 million.
- Despite the anticipated winding down of the case, some legal issues remain, although both Ripple and the SEC support terminating the case.
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The Securities and Exchange Commission (SEC) and Ripple jointly requested that an appeal in a 2020 SEC case against Ripple be paused while settlement talks were underway, and the appellate court granted their request.
SEC-Ripple’s motion to hold the appeal in abeyance or temporarily halt the case for 60 days was granted by the U.S. Court of Appeals for the Second Circuit in a filing on April 16.
The order requires the SEC to submit a status report by June 15. The case against Ripple and its executives, which was filed in December 2020, was anticipated to start to wind down following the announcement by Ripple CEO Brad Garlinghouse on March 19 that the SEC would be dropping its appeal against the blockchain company.
In August, a federal court ruled that Ripple was liable for $125 million. The SEC and the blockchain company filed an appeal and cross-appeal, respectively.
However, in a seemingly political turnabout, the SEC started dropping numerous enforcement cases against cryptocurrency companies after US President Donald Trump took office, and former chair Gary Gensler was replaced as acting chair by Mark Uyeda.
Trump’s inauguration fund received a $5 million XRP pledge from Ripple, and Garlinghouse and chief legal officer Stuart Alderoty participated in pro-Trump events.
Some legal entanglements remain after the August 2024 judgment and appellate cases, even though Ripple and the SEC both support the case’s termination. According to Alderoty’s March statement, Ripple would drop it.
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