"New Hope Emerges as Fox Business Journalist Eleanor Terrett Reports the US Securities and Exchange Commission (SEC) and Ripple Might Soon Reach an Agreement"

In a possible turning point for the XRP lawsuit, Fox Business journalist Eleanor Terrett reported on Wednesday that the US Securities and Exchange Commission (SEC) and Ripple might soon reach an agreement.

In a possible turning point for the hotly-discussed XRP lawsuit, Fox Business journalist Eleanor Terrett has reported that the US Securities and Exchange Commission (SEC) and Ripple might soon reach an agreement to end their dispute.

“Two well-placed sources tell me the SEC vs. Ripple case—which has engrossed the crypto world for over 18 months—could be coming to an end soon,” Terrett revealed on Wednesday.

According to her sources, the delay in reaching an agreement is due to Ripple’s legal team negotiating more favorable terms regarding August’s district court ruling.

That ruling hit Ripple with a $125 million fine and prohibited it from selling XRP to institutional investors. Terrett’s sources suggest the crypto firm’s team is pushing back, insisting that if the SEC’s new leadership aims to “wipe the enforcement slate clean” for previously-targeted crypto firms, then Ripple should not be subject to a judgment that may no longer reflect the agency’s stance.

“There’s no real playbook for this,” Terrett added, emphasizing how this unique scenario may be “taking longer to resolve than the rest.”

An Easy Path To End The XRP Lawsuit

Pro-XRP attorney Fred Rispoli, meanwhile, contends via X that resolving the dispute over the ruling should be relatively straightforward—if the SEC is willing.

“I just don’t see this being the big issue some are making it out to be. In the broadest sense, it’s unorthodox, but not overly complicated,” Rispoli remarked.

According to Rispoli, there are multiple ways the agency and Ripple could neutralize Judge Torres’ order, which Rispoli believes will be appealed by the SEC if it reaches the Supreme Court.

“The SEC and Ripple can file a motion to vacate the judgment—the cleanest way to dispose of it. Telling the the Court ‘in consideration for potentially losing our entire crypto jurisdiction if we lose the appeal, we’re agreeing to vacate judgment in exchange for Ripple dropping its appeal.’ Torres is not going to second guess this.”

He added that even without formally vacating the order, the SEC could draft an agreement stating it will not enforce the ruling for the same consideration.

“The SEC doesn’t even have to vacate the order. It can simply draft an agreement with Ripple that it won’t enforce the judgment for the same consideration set out.

“The SEC Enforcement Manual has all kinds of general, vague language that recommends cooperation and settlement over the uncertainties of litigation so the authority for this behavior is covered—but even if it weren’t, who cares? This isn’t a good thing, but the SEC (and most other .gov agencies) has proven it does what it wants, when it wants, without regard to due process. Here, it works in justice’s favor for once.”

Despite Rispoli’s optimism, some community members are concerned about the possibility of stricter enforcement returning with different leadership in the future.

One user asked: “What if, say, in 4 years, we are back to a Gensler-style SEC and the SEC then tries to enforce the injunction?”

To this, Rispoli replied:

“That’s the ONLY fear—and one that could be wiped out with a superseding agreement between SEC and Ripple. And if your scenario happens, crypto already lost and a lot more folks than just Ripple would be worried.”

Can A Court’s Decision Really Be Overridden?

A second point of contention involves whether or not the SEC can effectively negate a district court’s decision through a negotiated settlement. Critics argue that administrative agencies should not have the authority to overturn final rulings made by Article III courts.

Rispoli, however, referenced a notable precedent involving Citigroup. He pointed to SEC v. Citigroup Global Markets, Inc., 673 F.3d 158 (2d Cir. 2012), where an appellate court reversed a district judge’s refusal to approve an SEC settlement.

“It’s happened before,” he noted, adding that courts typically grant substantial deference to consent decrees and settlement agreements proposed by the SEC and the entities it aims to sanction. In that case, the Second Circuit ruled that the district judge erred by failing to defer to the SEC’s judgment in accepting a settlement.

At press time, XRP traded at $2.21.