Appeal Temporarily Halted as Political Winds Shift at the SEC
The U.S. Court of Appeals for the Second Circuit has granted a joint motion from Ripple Labs and the Securities and Exchange Commission (SEC) to place their ongoing legal appeal on hold for 60 days, signaling potential progress toward a settlement in one of the longest-running legal battles in the crypto space.
The April 16 court filing puts the appeal “in abeyance,” with the SEC required to submit a status update by June 15. The pause follows a March 19 announcement by Ripple CEO Brad Garlinghouse, who said the SEC intended to drop its appeal—a move widely interpreted as part of the agency’s shift in enforcement posture under the Trump administration.
Case Background: A $125 Million Ruling and Political Undertones
The original lawsuit, filed by the SEC in December 2020, accused Ripple and its executives of illegally selling XRP as an unregistered security. In August 2024, a federal court ruled that Ripple was liable for $125 million, triggering both sides to file appeals and cross-appeals.
Since then, the legal tide appears to have turned. Under acting SEC chair Mark Uyeda, and following the election of President Donald Trump, the agency has been dropping several crypto enforcement actions, including against Coinbase, Uniswap, and Gemini.
Ripple, meanwhile, has aligned more closely with Trump’s administration. The firm donated $5 million worth of XRP to Trump’s inauguration fund, and executives including Garlinghouse and Chief Legal Officer Stuart Alderoty have been seen attending pro-Trump events.
Settlement on the Horizon?
Despite apparent agreement from both Ripple and the SEC to wind down the case, several legal matters still require resolution. Alderoty previously stated that Ripple would drop its cross-appeal and was expecting to recoup $75 million from the initial court judgment.
However, the exact terms of any settlement remain undisclosed, and further outcomes from the appellate negotiations are yet to be confirmed.
“This pause may signal the beginning of the end,” one legal analyst noted. “But Ripple’s regulatory fight still casts a long shadow over the industry.”
SEC Leadership in Transition
The settlement talks come amid a major leadership shift at the SEC. Acting chair Mark Uyeda is expected to step down following the April 9 Senate confirmation of Paul Atkins as the next permanent SEC chair.
Atkins’ confirmation has stirred debate due to his close financial ties to the crypto industry. Public disclosures show he holds millions in equity stakes in firms like Securitize, Pontoro, and Patomak Global Partners—raising conflict-of-interest concerns during his confirmation hearings.
His appointment is expected to further soften the SEC’s approach to crypto regulation, potentially paving the way for friendlier policies and faster settlements in ongoing enforcement cases.
Final Thoughts: Ripple Case Nears Resolution as Regulatory Landscape Shifts
The 60-day pause in the Ripple-SEC appeal is not just a procedural footnote—it reflects the changing political and regulatory dynamics of the U.S. crypto landscape.
With Trump-backed leadership at the SEC, growing industry-aligned sentiment in Washington, and Ripple’s clear efforts to align itself with the new order, the case may finally be headed toward closure.
If a settlement is reached, it could set a major precedent for how the SEC handles token classification, enforcement discretion, and the future of digital assets in the U.S. regulatory framework.
