The U.S. Securities and Exchange Commission (SEC) is reportedly in the process of officially ending its lawsuit against payments firm Ripple.
The SEC originally sued Ripple in 2020 under allegations that it sold XRP as an unregistered security, and in 2024, the company won a partial victory during summary judgment but received a $125 million fine.
[adinserter block="1"]Now, Fox Business reporter Eleanor Terrett says that Ripple and the SEC are in the process of wrapping up the suit, which was delayed due to the two parties attempting to settle on certaind details of the agreement – particularly surrounding the $125 million fine.
Citing unnamed but “well-placed sources,” Terrett says,
“My understanding is that the delay in reaching an agreement is due to Ripple’s legal team negotiating more favorable terms regarding the August district court ruling, which imposed a $125M fine on the company and included a permanent injunction preventing the company from selling XRP to institutional investors.
The argument, I’m told, is that if the new SEC leadership is wiping the enforcement slate clean for all previously-targeted crypto firms because it believes regulatory clarity will resolve the underlying issue, why should Ripple still be penalized? Accepting the Torres ruling as it stands would mean that Ripple is essentially agreeing to admit to wrongdoing – but now the SEC itself is seemingly unsure whether any wrongdoing occurred.
There’s no real playbook for this kind of thing which could explain why this case is taking longer to resolve than the rest. Stay tuned.”
Legal expert Jeremy Hogan, who has covered the case closely since the beginning, recently theorized that the case will likely officially end in May.
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