Ripple vs. SEC: XRP Lawsuit Nearing Resolution as Negotiations Advance

Ripple’s long-standing legal battle with the U.S. Securities and Exchange Commission (SEC) appears to be reaching its final stage. According to recent reports, negotiations between the two parties are progressing, suggesting that a resolution could be imminent.

Fox Business journalist Eleanor Terrett shared on X (formerly Twitter) that two reliable sources have indicated the case is in the process of concluding. Terrett explained that the primary reason for the delay lies in Ripple’s legal team pushing for more favorable terms concerning the August district court ruling, which imposed a $125 million penalty and a permanent injunction restricting XRP sales to institutional investors.

Ripple Pushes Back Against SEC’s Stance

Ripple’s legal strategy hinges on the SEC’s evolving position on cryptocurrency regulation. Terrett noted that Ripple is questioning why it should still face penalties when the SEC’s new leadership is reportedly reevaluating its enforcement actions against crypto firms. Ripple argues that accepting the court’s decision as it stands would be tantamount to admitting wrongdoing—an issue now cast in doubt given the regulator’s shifting stance.

Legal expert James Murphy, known as Metalawman on X, echoed similar sentiments earlier this month. He speculated that Ripple is working to vacate Judge Torres’ ruling, as the findings of securities law violations and the accompanying injunction could hinder the company’s future initiatives, including a potential IPO. Murphy suggested that while the SEC may be open to a settlement involving both parties dropping their appeals and Ripple paying the $125 million fine, Ripple is likely seeking better terms before finalizing any agreement.

Regulatory Shifts and Their Impact on the Case

The SEC’s lawsuit against Ripple, filed in December 2020, accused the company of conducting an unregistered securities offering through XRP sales. The case has since become a defining moment in U.S. cryptocurrency regulation. However, significant changes within the SEC may be influencing the course of negotiations.

Following the departure of former SEC Chair Gary Gensler, the agency has shifted its approach, reportedly reconsidering enforcement actions against several crypto firms, including Coinbase, Kraken, and Robinhood. Under its new leadership, the SEC has formed a task force to reassess its regulatory stance on digital assets. This broader policy shift may be a key factor in Ripple’s determination to secure more favorable settlement terms before the case officially concludes.

As negotiations continue, the outcome of this case could have far-reaching implications for Ripple and the broader cryptocurrency industry.

Make money without lifting your fingers: Start using a world-class auto trading solution.

EightCap, your trusted Partner in CFDs, Cryptocurrencies and Stocks.