According to insiders, the U.S. Securities and Exchange Commission is on the brink of concluding its protracted case against Ripple.
On March 12, former FOX Business journalist Eleanor Terrett mentioned that the SEC’s lawsuit against Ripple was “in the process of wrapping up.” The SEC initiated legal proceedings against Ripple Labs, the organization behind the XRP (XRP) cryptocurrency, in 2020.
This is a pivotal case that has sparked one of the longest legal confrontations between the regulator and a cryptocurrency firm.
Recently, the SEC has concluded several investigations and legal actions, including those involving Coinbase, Kraken, and Gemini. Speculation is rife that it’s merely a matter of “when” and not “if” regarding the Ripple case.
Importantly, legal experts suggest that the SEC might be looking to start fresh on cases that do not involve allegations of fraud.
According to Terrett’s sources, the hold-up in reaching a final agreement between the SEC and Ripple stems from the company’s legal team. Reports indicate that Ripple is seeking a resolution that includes “favorable terms” concerning the $125 million penalty the court imposed on them in August 2024.
Another point of contention is the permanent injunction that currently bars Ripple from selling its XRP holdings to institutional investors. Ripple’s attorneys argue that if the SEC’s new leadership, which took over after Gary Gensler’s departure, is inclined to resolve all cases, then why should Ripple face penalties?
“Accepting the Torres ruling as it stands would mean that Ripple is essentially agreeing to admit to wrongdoing,” sources were quoted as saying by Ripple’s legal team.
Ripple has consistently denied any wrongdoing and perceives the SEC’s case as a malicious attack that has negatively impacted the company, its token, and the overall market. In July 2023, Judge Analisa Torres determined that XRP was not classified as a security.
Following this ruling, the token’s price surged but remained constrained by the SEC’s appeal. However, in 2024, after Donald Trump’s election victory and Gensler’s resignation, XRP saw exponential growth, contributing to broader market gains.