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Ripple’s high-stakes legal battle with the U.S. Securities and Exchange Commission (SEC) may be drawing to a close, as recent reports indicate that settlement negotiations have reached an advanced stage. At the center of these discussions is the possibility of vacating a key court ruling that imposed a $125 million penalty on Ripple for alleged securities violations tied to its XRP token. The outcome of these talks could have far-reaching implications for both Ripple and the broader cryptocurrency industry, which continues to closely watch the case as a potential precedent for regulatory clarity in the digital asset space.
The long-running legal standoff between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) over the sale of XRP may be drawing to a close, according to emerging reports. The case, which began in December 2020, has stood at the center of debate within the crypto industry, influencing how digital assets might be regulated in the U.S.
On March 12, Fox Business journalist Eleanor Terrett shared on X (formerly Twitter) that two sources familiar with the matter indicated that the legal proceedings between Ripple and the SEC are nearing resolution. According to Terrett, the holdup appears to stem from Ripple’s legal team working to negotiate more favorable terms in light of a previous court ruling from August, which imposed a $125 million fine and prohibited Ripple from selling XRP to institutional investors.
Terrett explained that her sources believe Ripple’s argument hinges on the notion that if the SEC’s current leadership is now rethinking its past enforcement approach — opting to drop several crypto-related cases in pursuit of regulatory clarity — then it seems contradictory to continue penalizing Ripple for actions that are now in a legal gray area. She noted that Ripple is concerned that accepting the terms of the court’s ruling as-is could be perceived as an admission of guilt, especially when the SEC itself appears uncertain about the alleged wrongdoing.
The company is reportedly leveraging the SEC’s evolving position on crypto enforcement as a key point in negotiations. With the agency under new leadership and backing away from several crypto lawsuits — including actions against major firms like Coinbase, Kraken, and Robinhood — Ripple’s legal team sees an opportunity to challenge the legitimacy of past penalties.
Source: news.bitcoin.com
Earlier this month, attorney James Murphy, widely known as “MetaLawMan” on social media, speculated that the ongoing delay may be due not to the SEC but to Ripple seeking to vacate Judge Analisa Torres’ ruling. Although the decision largely benefited XRP holders by clarifying that XRP itself is not a security, Murphy highlighted that parts of the ruling — particularly the finding of securities law violations and the permanent injunction — could complicate Ripple’s ambitions, such as pursuing an initial public offering or conducting exempt securities offerings in the future.
Murphy also proposed that the SEC might have offered to settle under terms that included both sides dropping their appeals and Ripple paying the $125 million fine. However, it appears Ripple is pushing for an agreement that would allow it to move forward without the baggage of the current ruling.
With the SEC’s regulatory approach in flux following the departure of former Chair Gary Gensler, the outcome of this landmark case may signal a broader shift in how U.S. authorities intend to handle crypto enforcement going forward.
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