According to Fox Business Journalist, Eleanor Terrett, the legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) is reportedly nearing its conclusion. The case, which has been ongoing for years, is in its final stages as Ripple’s legal team continues negotiations to secure more favorable terms regarding the August district court ruling.
The primary sticking point in the discussions appears to be the $125 million fine imposed on Ripple and the permanent injunction barring the company from selling XRP to institutional investors. Ripple’s legal team is reportedly pushing back against these terms, arguing that the changing stance of the SEC on crypto regulations should be considered.
Also Read: Ripple vs. SEC: Here are 5 Possible Outcomes as April 16 Deadline Approaches
Ripple Challenges SEC’s Inconsistency in Crypto Regulation
If the new SEC leadership is reconsidering its enforcement actions against various crypto firms, Ripple should not be penalized under outdated regulatory interpretations. Sources indicate that Ripple’s legal team is unwilling to accept a ruling suggesting wrongdoing, especially when the SEC has shown signs of uncertainty regarding its stance on digital asset regulations.
Differences in complexity during negotiations between Ripple and the SEC have caused the case to become more prolonged than similar crypto-related enforcement actions. The lack of established digital asset regulations presents an exceptional case because no specific examples exist to guide appropriate settlement approaches.
Judge Analisa Torres issued a landmark ruling in August, which brought significant advantages to Ripple because it classified XRP as non-security when retail customers purchased it. However, the section of the ruling that limits institutional XRP sales creates disagreement among observers in the industry.
Legal representatives from Ripple are expected to petition for changing parts of the court ruling to match the new SEC regulatory framework.
Recent Speculation on a Private Settlement
The SEC’s recent decisions to reduce enforcement actions against significant cryptocurrency firms, including Binance, Kraken, and Coinbase, have sparked speculation about the potential dismissal of the Ripple lawsuit.
Former White House Communications Director Anthony Scaramucci indicated through speculation that the SEC had withdrawn its case against Ripple. In a podcast interview, Anthony Scaramucci suggested that Ripple falls within the category of firms obtaining dismissal of their legal disputes with the SEC.
Confirmed Timeline for Potential Resolution
Attorney Fred Rispoli recently speculated that a resolution or significant development in the Ripple case could occur before the company’s April 16, 2025, filing deadline. This prediction has added to the growing anticipation surrounding the lawsuit as Ripple and the SEC continue working toward a possible agreement.
With increasing pressure for regulatory clarity in the crypto industry, the resolution of this case could set a precedent for other blockchain firms facing similar legal challenges. Market participants and the XRP community are closely watching developments, as the outcome could have long-term implications for the classification and sale of digital assets in the United States.
Although there is no confirmed timeline for the final resolution, sources indicate that the case could wrap up soon. The discussions between Ripple and the SEC are expected to continue as both sides seek an agreement that reflects the evolving regulatory landscape.
Also Read: Grayscale’s Hedera ETF Under SEC Review—Could This Be a Game-Changer for Crypto?
