The long-running legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) over XRP sales may soon reach its conclusion, according to recent reports. Spanning several years, this case has been a focal point within the cryptocurrency industry.
On March 12, Fox Business journalist Eleanor Terrett reported on social media platform X that two well-placed sources have indicated that the lawsuit is in its final stages and could soon be resolved.
“Two well-placed sources tell me that the SEC vs. Ripple case is in the process of wrapping up and could be over soon,” she stated, elaborating further:
Based on available information, the delay in finalizing an agreement stems from Ripple’s legal team pushing for more favorable terms following the August district court ruling. That ruling imposed a $125 million fine on Ripple and placed a permanent injunction restricting the company from selling XRP to institutional investors.
“The argument, I’m told, is that if the new SEC leadership is effectively clearing past enforcement actions against crypto firms under the belief that regulatory clarity will address core concerns, then why should Ripple still face penalties?” Terrett explained. “Accepting Judge Torres’ ruling as is would essentially require Ripple to concede wrongdoing—yet the SEC itself now appears uncertain about whether any wrongdoing actually took place.”
Ripple Challenges SEC’s Changing Crypto Stance as Lawsuit Nears Resolution
Eleanor Terrett highlighted that Ripple’s primary argument centers on the SEC’s evolving position on cryptocurrency regulation. With the agency’s new leadership reportedly reassessing enforcement actions against crypto firms, Ripple maintains that it should not be penalized for alleged past violations. Given the unprecedented nature of this legal dispute, its resolution may be taking longer than other crypto-related enforcement cases.
Earlier this month, attorney James Murphy, known as Metalawman on X, speculated that the delay might be due to Ripple’s push to vacate Judge Torres’ decision rather than actions by the SEC. While the ruling largely favored XRP holders, Murphy pointed out that findings of securities law violations and the imposed injunction could complicate Ripple’s future ambitions, including a potential exempt securities offering or an initial public offering (IPO). He suggested that the SEC might have agreed to a settlement where both sides drop their appeals and Ripple pays a $125 million fine, but Ripple could be negotiating for more favorable terms.
The SEC initially filed suit against Ripple in December 2020, alleging that the company had conducted an unregistered securities offering through its XRP sales. This case has since become a landmark legal battle in the landscape of U.S. cryptocurrency regulation. However, the SEC itself is undergoing significant shifts, with many enforcement actions against crypto firms—including Coinbase, Kraken, and Robinhood—being abandoned.
The regulator’s stance on digital assets appears to be changing following the exit of former SEC Chair Gary Gensler. Under new leadership, the agency has formed a task force to reevaluate its crypto enforcement strategy, a shift that may be influencing the ongoing negotiations between Ripple and the SEC as they work toward a final resolution.
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