According to Eleanor Terrett (@EleanorTerrett), sources reveal that the U.S. Securities and Exchange Commission (SEC) is in the final stages of closing its case against Ripple. However, ongoing negotiations over the terms of the settlement are causing delays.
Ripple Pushes for Better Terms Amid SEC’s Shifting Stance
Ripple’s legal team is reportedly seeking more favorable conditions concerning the August court ruling that imposed a $125 million fine and a permanent ban on selling XRP to institutional investors. The company argues that it should not face penalties if the SEC is rolling back enforcement actions against other crypto firms.
Also Read: Big Date Approaching for Ripple (XRP), Here is What to Expect
In August 2023, U.S. District Judge Analisa Torres ruled that Ripple must pay the fine and restricted XRP sales to institutional investors. However, the court determined that XRP sales to retail investors did not violate securities laws.
Following this, the SEC appealed, and Ripple responded with a cross-appeal to challenge aspects of the ruling.
Terrett notes that accepting the Torres ruling would imply Ripple admitting to wrongdoing. However, with the SEC’s leadership now reconsidering past crypto cases, the agency appears uncertain about whether a violation occurred.
Implications for the Broader Crypto Market
There is no established precedent for such a situation, which may be contributing to the extended resolution timeline. As the case concludes, the outcome could have significant implications for regulatory clarity in the cryptocurrency industry.
While the SEC has yet to make an official announcement, reports suggest both parties are moving toward a resolution. The uncertainty surrounding the case has contributed to XRP price fluctuations, with investors reacting to each new development.
The resolution of the Ripple case could set a precedent for how the SEC handles future crypto-related cases. Market participants await further updates as the legal battle nears its conclusion.
Also Read: Ripple vs. SEC: Here are 5 Possible Outcomes as April 16 Deadline Approaches
