The legal fight between Ripple and the U.S. Securities and Exchange Commission (SEC) seems far from over. Even though the U.S. Court of Appeals has agreed to pause the case for 60 days, many are now asking, What’s happening behind the scenes?
Meanwhile, Prominent Crypto Lawyer James Farrell has shed some light on it. Let’s see what it is.
Settlement Talks, IPO Hopes
According to James Farrell, this break in the case could mean something big is coming. The court has stopped the appeal for now after both Ripple and the SEC asked for it together.
Farrell thinks Ripple and the SEC might be working on two things: a possible settlement and an “indicative ruling” from Judge Torres. Ripple wants the judge to let them sell private tokens using certain rules, which they can’t do right now because of their past violations.
Why is this important?
Well, if Ripple can’t sell tokens privately, it’s nearly impossible for them to go public anytime soon. While other crypto companies might launch IPOs, Ripple could be stuck waiting for years for its IPO.
Ripple’s Two-Part Ask
Farrell says there are two ways this could be done. In the first path, Ripple sends a settlement offer to the SEC. If the SEC says yes but denies the motion to change the rules, Ripple will settle the case, and the appeal ends.
But they’ll still need Judge Torres’ approval to change the rules. That process may take an additional 3 to 6 months, with no guarantee of approval.
The second path is trickier but has bigger potential. If the SEC agrees to both the settlement and Ripple’s request to change the rules, the case will return to Judge Torres. Then, she will decide what to do next, but this could still take months, depending on how fast she moves.
What’s Next For Ripple?
If both parties reach a full agreement, the appeal could be dismissed within the next month. But if Ripple must file separately with the court, the final decision may take much longer.
And if no agreement is reached, the case could head back to the appellate court, extending the legal fight potentially into late 2026 or 2027.
The SEC’s next official move is expected by June 15, and both the legal and crypto communities will be watching closely.
