Ripple Labs and the U.S. SEC Are Nearing a Resolution to Their Long-Running Legal Battle

FOX Business journalist Eleanor Terrett reports that the legal battle between Ripple Labs and the U.S. SEC is nearing a resolution.

The legal battle between Ripple Labs and the U.S. SEC is nearing a resolution as settlement talks continue, according to FOX Business' Eleanor Terrett. Following an August district court ruling—a partial victory for Ripple—both sides are discussing a settlement. However, sources familiar with the matter say there's still a major sticking point: the $125 million fine.

Two well-placed sources have informed me that the SEC case against Ripple is nearly complete and could be resolved soon. The delay in reaching an agreement seems to be due to Ripple's legal team negotiating more favorable terms regarding the August ruling by Judge Analisa Torres, which saw a partial victory for the crypto firm.

A significant hurdle, according to insiders, is Ripple's objection to the $125 million fine imposed by Judge Torres in July 2023. While this sum is considerably less than the SEC's original $2 billion demand, Ripple's legal team is still fighting for better terms. They maintain that the fine is unjust, especially given the SEC's evolving stance under new leadership.

Essentially, Ripple's argument is that it shouldn't be punished for actions taken during a period of regulatory murkiness, especially if the SEC is now mitigating its approach to crypto regulations.

So now the ongoing discussions center on whether Ripple will pay the fine and whether it will be bound by a long-term ruling preventing the sale of XRP to institutional investors. This last point is crucial for XRP's future.

The SEC's Shifting Sands on Crypto

Ripple's position gains weight considering the larger shifts in the regulatory landscape for digital assets. The SEC has dropped several lawsuits against major crypto firms like Coinbase (NASDAQ:COIN), Gemini, and Kraken. These moves hint at a possible revision of the SEC's approach to the crypto industry.

These shifts in strategy might be linked to the arrival of a new leadership team at the SEC, which is apparently keen on reaching a settlement with Ripple. However, the institution is also juggling several other cases.

Despite the ongoing settlement talks, the case remains unresolved. While other crypto-related cases, such as those involving Coinbase and Binance, have seen progress or temporary pauses, the Ripple-SEC dispute is still at an impasse.

Legal experts, including James Murphy, suggest the delay could stem from Ripple's efforts to settle the appeal of Judge Torres's ruling. This claim suggests that Ripple's legal team is aiming to overturn the ban and limit the impact of the findings of securities law violations. The outcome of these negotiations could have major implications for XRP's price and its future role in the crypto market.