The collaborative decision between the SEC and Ripple to temporarily halt legal procedures for their cross-appeal has been authorized. They will have an additional 60 days to come to terms and peacefully conclude their legal dispute.
The Ripple case has been making progress toward a final outcome for more than a month, although procedural challenges are prolonging the legal conflict. For instance, any agreement cannot be finalized by the Commission until Paul Atkins is officially instated as Chair.
The expectation of an agreement between Ripple and the SEC has been ongoing following indications from the Commission that they intend to drop the case, which was subsequently confirmed. A remaining cross-appeal is the final hurdle before a resolution, with both parties expressing a desire for a settlement. Initiatives have been taken in this direction:
The request from both Ripple and the SEC to pause court proceedings related to the cross-appeal was granted through a joint motion made last week. Progress was being made towards an agreement between the two parties, and they sought to save time and legal expenses.
The SEC similarly made a joint request with Binance, stating they had engaged in “productive discussions” to settle their differences. Although slightly different from the motion made by Ripple and the SEC, the Binance filing touched on broader policy implications.
Despite the 60-day period given, recent developments indicate that progress can be made at a quicker pace.
Nonetheless, there are still hurdles to achieving a swift resolution. The confirmation of Paul Atkins as the next SEC Chair by President Trump has been successful, but the formal induction ceremony is pending.
It is a procedure that could be completed at any time, but certain administrative steps could cause delays. Atkins would then need to lead the SEC to approve the settlement with Ripple. Despite the rapid nature of the crypto industry, legal measures can be time-consuming.
In an ideal scenario, Atkins would sign a settlement agreement upon taking office. However, there may be unforeseen minor impediments that could cause further delays.