SEC and Ripple Request Court to Pause Appeal Amid Settlement Talks
The U.S. Securities and Exchange Commission (SEC) and Ripple Labs have asked the U.S. Court of Appeals for the Second circuit to keep their appeal on hold. This request comes as both parties are working towards a potential settlement.
James K. filan, Rippleās defense attorney, shared an update on June 17. He mentioned that the SEC and ripple have reached a preliminary agreement. They are now waiting for an āindicative rulingā from the district court. If approved, this ruling would lift the injunction against Ripple and adjust the $125 million penalty imposed last year.
The SEC filed this motion after the appeals court agreed to pause proceedings in April. The SEC must submit a new status report by August 15. the proposed settlement includes removing the injunction and splitting the penalty.
this case, which began in 2020, involves Ripple allegedly offering unregistered securities. A federal judge ruled in July 2023 that Rippleās programmatic sales were legal, but upheld charges related to institutional sales. The penalty was placed in escrow during the appeals process.
The case has been ongoing since 2020. In July 2023, a federal judge ruled that Rippleās programmatic sales were legal but upheld charges related to institutional sales. The new SEC leadership and changing crypto enforcement strategies helped reach this revised deal.
A settlement could impact the approval of a spot XRP (XRP) exchange-traded fund. Applications from firms like Grayscale and ProShares are pending. Market odds on Polymarket recently dipped to 88%, but Bloomberg analysts still estimate an 85% chance of approval this year.
