The ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has been put on hold for 60 days, following a joint request from both parties. The U.S. Court of Appeals for the Second Circuit granted the pause on April 16, giving both sides time to pursue settlement negotiations. A status update is expected by June 15.

This marks a significant development in the case that began in December 2020, when the SEC accused Ripple and its executives of conducting an unregistered securities offering through XRP sales. The case reached a turning point in August 2024, when a court ruled Ripple owed $125 million. Both parties had since filed appeals and cross-appeals.

However, the tides seem to be shifting politically. After President Donald Trump took office and Mark Uyeda replaced Gary Gensler as acting SEC chair, the commission began retreating from several crypto enforcement actions. Ripple has openly shown support for Trump, even pledging $5 million in XRP toward his inauguration.

Further uncertainty clouds the case with new leadership incoming at the SEC. Paul Atkins, confirmed as the new SEC chair on April 9, has raised eyebrows over his deep financial ties to crypto firms such as Securitize and Patomak. During his confirmation, lawmakers questioned whether these connections might influence his role in regulating the crypto space.

Ripple’s Chief Legal Officer Stuart Alderoty previously stated the company would withdraw its cross-appeal and receive a $75 million refund. But the full scope of the ongoing settlement talks remains unclear.

With political winds shifting and the SEC leadership under scrutiny, the outcome of this crypto standoff could reshape how the U.S. handles blockchain regulation moving forward.