The long-running legal battle between the Securities and Exchange Commission (SEC) and Ripple may be nearing its conclusion sooner than anticipated. On April 16, the U.S. Court of Appeals for the Second Circuit paused the appeal proceedings after a joint motion by both parties. This pause was intended to conserve judicial and party resources while the SEC internally reviews and approves the settlement agreement reached in principle with Ripple. Under the terms of this pause, the SEC must file a status report on the progress of the settlement by June 9, 2025.
The settlement reportedly involves Ripple forfeiting $50 million of a $125 million fine held in escrow, with the remaining $75 million to be returned to the company. Both parties have agreed to drop their respective appeals pending final SEC commissioner approval, including a vote by newly appointed SEC Chair Paul Atkins, who is viewed as crypto-friendly.
The Settlement Could Come Much Sooner Than Expected
According to financial analyst NCashOfficial, a cryptocurrency YouTuber with over 200,000 subscribers, the case could be resolved much earlier than the stipulated 60-day waiting period. NCashOfficial believes the case might conclude by the end of May, rather than waiting until the June deadline.
The analyst asserts that the case could be dropped at any moment and predicts this will happen far sooner than the official 60-day timeframe that was established.
NCashOfficial points to the recent appointment of Paul Atkins as the new SEC Chairman as a key factor that could accelerate the case’s conclusion. Atkins was sworn into office and has officially started his tenure as SEC Chairman, bringing what many in the crypto industry hope will be a pro-crypto stance to the regulatory body.
In his opening remarks, Atkins emphasized that providing a firm regulatory foundation for digital assets through a rational, coherent, and principled approach would be a top priority during his chairmanship. This statement suggests a potentially more favorable regulatory environment for cryptocurrencies, including XRP.
Ripple CEO’s Optimism and Recent Business Moves
The analyst highlighted that Ripple CEO Brad Garlinghouse previously expressed optimism about Atkins’ appointment, describing it as an exceptional choice and suggesting that Atkins would restore sensible regulation to the SEC.
NCashOfficial also notes that Garlinghouse has essentially indicated the case is already finished. In late March, Garlinghouse made statements suggesting the legal battle was drawing to a close, reinforcing the analyst’s belief that an official announcement could come at any moment.
Adding weight to his prediction of an imminent case resolution, NCashOfficial points to Ripple’s recent business activities, particularly its significant acquisition of Hidden Road for $1.25 billion. According to the analyst, such a major financial commitment suggests Ripple is confident about its legal position.
NCashOfficial explains that Ripple would not make such a substantial acquisition if the case remained unresolved or if they anticipated having to pay significant penalties. This business move indicates confidence that the legal issues are effectively settled.
The analyst also draws connections between the timing of the case resolution and developments in stablecoin legislation. NCashOfficial notes that Ripple launched its ROUSD stablecoin in December and suggests that the case resolution might align with broader regulatory developments in the stablecoin space.
Paul Atkins Could Boost XRP Through Clearer Rules
NCashOfficial believes that with Atkins at the helm of the SEC, the cryptocurrency industry could see significant regulatory clarity, which would benefit not just Ripple and XRP but the entire digital asset ecosystem.
Read Also: Why Ripple (XRP) Could Become the Top Choice of Central Banks Globally – Crypto YouTuber
Atkins has stated that this is a crucial moment for the economy, with entrepreneurs, businesses, and individuals eager to invest in America, while acknowledging that the current regulatory environment inhibits investment and often penalizes success.
Looking ahead, NCashOfficial predicts that XRP could become a much more significant component of the financial system than many anticipate, especially once banks begin to utilize Ripple’s technology and XRP. He suggests that such developments would likely follow regulatory clarity, which could be imminent with the resolution of the SEC case.
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