![\"\"](\"https:\/\/i0.wp.com\/predictmag.com\/blog\/wp-content\/uploads\/2023\/11\/istockphoto-1135927483-612x612-1.jpg?resize=612%2C408&ssl=1\")
<\/p>\nThe long-standing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) over the sale of XRP appears to be approaching its final phase, according to recent updates.<\/p>\n
The high-profile case, which has spanned several years, has remained a focal point within the crypto community. On March 12, Fox Business correspondent Eleanor Terrett posted on X (formerly Twitter) that two credible sources confirmed the case is in its concluding stages and a settlement may be imminent.<\/p>\n
\u201cTwo well-placed sources tell me that the SEC vs. Ripple case is in the process of wrapping up and could be over soon,\u201d Terrett wrote. She further explained that the primary holdup stems from Ripple\u2019s legal team seeking to renegotiate aspects of the August court ruling. That decision imposed a $125 million fine and barred Ripple from selling XRP to institutional investors permanently.<\/p>\n
<\/p>\n
Terrett highlighted that Ripple’s argument centers on the SEC\u2019s evolving position on cryptocurrency regulation. With the agency’s new leadership reportedly rethinking its approach to enforcement against crypto companies, Ripple argues it shouldn\u2019t be held accountable for actions that occurred under a now-outdated regulatory stance. Given the unprecedented nature of the case, the legal proceedings are likely taking longer than other crypto enforcement matters.<\/p>\n
Earlier this month, attorney James Murphy\u2014known as Metalawman on X\u2014similarly speculated that the delay could be due to Ripple trying to negotiate the vacating of Judge Torres\u2019 ruling, rather than the SEC.<\/p>\n
![\"\"](\"https:\/\/i0.wp.com\/predictmag.com\/blog\/wp-content\/uploads\/2024\/01\/istockphoto-1363462648-612x612-1.jpg?resize=612%2C408&ssl=1\")
<\/p>\n
Although the decision mostly favored XRP holders, Murphy pointed out that certain findings, such as securities law violations and an injunction, could complicate Ripple\u2019s future endeavors, including plans for an exempt securities offering or potential IPO. He suggested the SEC might have been willing to settle by having both sides drop their appeals in exchange for a $125 million fine from Ripple, though the company may be pushing for more favorable terms.<\/p>\n
The SEC originally filed its lawsuit against Ripple in December 2020, alleging the company conducted an unregistered securities offering by selling XRP. Since then, the case has emerged as a landmark in the ongoing regulatory debate over digital assets in the U.S. Meanwhile, the SEC is undergoing major internal changes, with several enforcement actions\u2014like those against Coinbase, Kraken, and Robinhood\u2014being dropped.<\/p>\n
The agency\u2019s crypto enforcement strategy appears to be shifting, especially after the departure of former SEC Chair Gary Gensler. Under new leadership, a dedicated task force has been created to reassess the SEC\u2019s regulatory direction regarding crypto. This change in tone may be shaping the current negotiations between Ripple and the SEC as they move toward a potential resolution.<\/p>\n