XRP Lawsuit: SEC Legal Battle with Ripple Likely Ending Soon Heres What to Expect
The legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple could be coming to an end, according to rumours that Ripple has been negotiating for better terms in the background and that the SEC wants to reset its relationship with the crypto industry.
Fox News reporter Eleanor Terrett revealed the news based on her anonymous sources. She detailed that the SEC and Ripple aimed to resolve the legal dispute and were finalizing a few details of the previous agreement, particularly surrounding the $125 million fine.
My understanding, wrote Terrett, is that the delay in reaching an agreement is due to Ripples legal team negotiating more favorable terms regarding the August district court ruling, which imposed a $125M fine on the company and included a permanent injunction preventing the company from selling XRP to institutional investors.
The legal battle between the SEC and Ripple has been one of the most closely watched disputes in the crypto world. The SEC alleges that Ripple sold unlicensed securities when they held a sale of XRP tokens.
In August 2024, the Federal Court ordered Ripple to pay a $125 million fee and banned it from selling XRP tokens to institutional investors. The impact on Ripple cannot be overstated because its business model was disrupted. The recent news of a possible end to the legal disputes is inspiring for the Ripple team.
The argument, Im told, wrote Terrett, is that if the new SEC leadership is wiping the enforcement slate clean for all previously-targeted crypto firms because it believes regulatory clarity will resolve the underlying issue, why should Ripple still be penalized?
Accepting the Torres ruling as it stands would mean that Ripple is essentially agreeing to admit to wrongdoing but now the SEC itself is seemingly unsure whether any wrongdoing occurred. Theres no real playbook for this kind of thing, which could explain why this case is taking longer to resolve than the rest. Stay tuned.
Gary Gensler, former SEC head, disputed the August 2024 ruling, presided over by Judge Torres, because the fee was reduced from $1.95 billion to $125 million. However, many analysts watching the Ripple saga unfold, believe that a settlement is underway, and given the new Trump administration, may drop the case entirely.
The delay, with a final settlement, comes as Ripples legal team negotiates more reductions in Judge Torres ruling. The team remains optimistic as the SEC winds down its war on crypto and numerous lawsuits against crypto businesses. Therefore, the original ruling by Judge Torres may be wholly dropped given the radical changes in regulatory policies.
The Ripple team initially saw Torres ruling as a success because the court ruled that the automated sales of tokens to retail traders did not constitute a securities transaction regarding the XRP sale.
The SEC is completely reversing its war on crypto, cancelling its many legal battles with Coinbase, Kraken, and Cumberland. Ripple investors have patiently waited for their token to benefit from the new changes.
Mark Uyeda, the new SEC chairman, has upended the departments focus, reversing previous cases and even changing the entire perspective of operations. Ripple Labs, notably its legal team, sees this seismic change as indicating a complete removal of the legal case.
Ripples legal team sees any compromise with the SEC, such as making a settlement, as an admission of guilt on their part. The SEC itself disagreed with Torres ruling because it disputed the findings that XRP sales did not constitute a securities transaction. The SEC, under previous leadership, challenged the court ruling in January and would prefer the original fee of around $1.95 billion.
Text source: ZyCrypto
