Ripple vs SEC Lawsuit Update: Pause in Proceedings, Settlement Talks and IPO Considerations
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Ripple vs SEC Lawsuit Update: Settlement Talks, IPO Hopes & A Long Wait Ahead?
In a recent update to the ongoing Ripple vs SEC lawsuit, a pause in the case has led many wondering what’s happening behind the scenes. The U.S. Court of Appeals has agreed to put the appeal on hold for 60 days, with a next update expected by June 15. What could this mean? According to prominent crypto lawyer James Farrell, settlement talks and hopes for Ripple’s future IPO plans are now at the forefront.
The court’s decision may indicate that both parties are negotiating possible agreements, including potential rule changes. While some speculate about the chances of a full settlement, others believe the case may continue into 2026 or even 2027 if an agreement cannot be reached.
Firstly, let’s address what this pause means. The break in the appeal process may indicate that both parties are working on a possible solution. If Ripple and the SEC can come to an agreement, it could lead to a settlement and ultimately dismiss the appeal. However, this is not guaranteed as there is no promise of Judge Torres’ approval regarding the requested rule change.
The proposed settlement would likely need to address Ripple’s request for permission to sell private tokens using specific rules. Currently, past violations prevent them from doing so, which would significantly hinder their plans for an Initial Public Offering (IPO).
Two possible paths are being considered by Ripple. The first scenario involves sending a settlement offer to the SEC, which could lead to a swift resolution if accepted. In this case, the appeal would end, and Ripple would still need approval from Judge Torres regarding the requested rule change.
The second path is more complicated but potentially offers greater benefits. If the SEC agrees to both the settlement and the rule change, the case would return to Judge Torres for further consideration. This process could take several months, depending on her timeline.
A potential outcome of this pause could see a settlement reached within a month if all goes smoothly. However, if Ripple must file separately with Judge Torres following the appeal’s end, a decision may not be made until 3-6 months later.
If an agreement cannot be reached between both parties, the case would likely return to the appeals process, which could push the timeline into 2026 or even beyond.
Source: https://coinpedia.org/news/ripple-vs-sec-lawsuit-update-settlement-talks-ipo-hopes-a-long-wait-ahead/
