Key takeout
The SEC lawsuit against Ripple is expected to close soon as negotiations continue. Ripple’s legal team is seeking changes to the court’s ruling to avoid a $125 million fine.
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Eleanor Terrett of Fox Business Journalist reported Wednesday, citing two sources with knowledge of the matter as the longstanding legal battle between the US SEC and Ripple Labs approaches a resolution, and both sides negotiate details of the August district court decision.
scoop: Two well-placed sources conclude with @secgov vs. @ripple case and tells us that it may end soon.
My understanding is that the delay in reaching an agreement is due to Ripple’s legal team negotiating more favorable terms on August…
– Eleanorterrett (@Eleanorterrett) March 12, 2025
The SEC has withdrawn numerous lawsuits against crypto companies over the past few weeks. These include Coinbase, Gemini, Robinhood, Uniswap Labs, Kraken, and Opensea. Securities Watchdog and Consensy have also reached an agreement to dismiss the securities enforcement case in relation to MetaMask.
Regarding Binance, the crypto company and the SEC have filed a joint motion to suspend the 60-day ongoing lawsuit. Regulators also suspend civil fraud cases against Justin Sun, with both sides reportedly seeking a resolution.
However, the Sec-Ripple case remains unresolved, with settlement talks delayed due to continued negotiations over the court’s terms in August. Decide, that It ordered Ripple to pay a $125 million fine, imposed a permanent injunction, preventing the company from selling XRP to institutional investors.
Ripples I’m discussing In the case of SEC new Leadership is about rethinking its enforcement approach and giving other crypto companies a fresh start, and there is no need to accept penalties based on past regulatory uncertainties.
There is no clear precedent for handling such situations, so the solution will take longer than expected.
Legal experts previously provided comparable perspectives.
In a statement shared this month, well-known crypto attorney James Murphy speculated that the delay may not be solely due to the SEC. He suggested that Ripple had actively negotiated with the SEC to overturn or alter certain parts of Judge Torres’ August ruling.
Murphy said the ruling was largely considered a victory for XRP holders, but it had two issues for Ripple, including a violation of the securities law (institutional sales) and an injunction. These factors could prevent Ripple from implementing future plans, such as its open market debut.
“The SEC believes that both sides have rejected the appeal and that the SEC has accepted a settlement in charge of a $125 million penalty,” Murphy said. “So it makes sense (at least for me) that Ripple might be negotiating for a better deal than that.”
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