Sec’s Case Against Ripple Set to Close, Sources Say: Fox Business

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Julia Smith

Author

Julia Smith

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Julia is an experienced editor with a passion for covering a wide variety of beats. She loves all things politics and regularly covers regulatory updates on emerging technology here for Crypto News.

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Key Takeaways:

  • The SEC and Ripple appear close to settling their extended legal conflict.
  • Changing enforcement approaches are emerging within the US crypto sector.
  • Ripple’s legal strategy reflects a broader industry adjustment in oversight.
  • The resolution may shape how future digital asset disputes are handled.

The United States Securities and Exchange Commission (SEC) has moved closer to ending its prolonged legal battle against Ripple, according to Fox Business reporter Eleanor Terrett in a March 12 X post.

Ripple, SEC Allegedly Nearing Agreement

According to Terrett’s post on Wednesday, two sources familiar with the matter claim the SEC is considering ending its legal dispute with Ripple once final terms are agreed upon.

Negotiations have reportedly stalled due to Ripple’s legal team seeking a more favorable outcome concerning a July 2023 ruling by District Court Judge Analisa Torres, which required the company to pay a $125 million fine.

The ruling was viewed as a partial win for Ripple, as the imposed fine was substantially lower than the nearly $2 billion originally sought by the SEC.

In October 2024, the SEC appealed Torres’ ruling, a move Ripple CEO Brad Garlinghouse criticized for damaging the regulator’s credibility and reputation.

“XRP’s status as a non-security is the law of the land today – and that does not change even in the face of this misguided – and infuriating – appeal,” Garlinghouse said in a statement on X shortly following the appeal.

Crypto Sector Sees Regulatory Changes In The U.S.

News of the potential deal comes amid broader regulatory shifts in the SEC’s approach to the blockchain industry following the resignation of former chair Gary Gensler.

During Gensler’s tenure, the agency pursued multiple lawsuits against major crypto firms, including Kraken, Coinbase, and Consensys.

Recently, the SEC has dropped several digital asset-related lawsuits, though cases against major firms like Coinbase and Robinhood remain ongoing.

Former U.S. President Donald Trump has voiced support for cryptocurrency regulations but has received mixed reactions from the crypto community regarding his stance.

If the SEC settles with Ripple, the company would be among a growing list of crypto firms no longer facing regulatory penalties.

Ripple’s Fate and the Bigger Picture

A resolution to the SEC’s case against Ripple would be a victory for the company, but the broader fight over crypto regulation remains far from settled.

While some firms have seen enforcement actions dropped, others continue to face legal challenges, highlighting the fragmented approach that has left the industry in limbo.

A shift away from aggressive lawsuits may signal a more measured strategy, but without a defined regulatory framework, digital asset firms remain in a state of uncertainty.

The question now is whether policymakers will seize the moment to provide clarity or leave the industry guessing once again.

Frequently Asked Questions (FAQs)

How might a resolution in the SEC-Ripple case influence US crypto regulations?

Resolving this legal dispute may prompt regulators to recalibrate their enforcement strategies, fostering a clearer framework for digital asset operations. Such a shift might influence oversight in similar future cases.

What could this settlement mean for Ripple’s market outlook?

A resolution might boost investor confidence and refine market perceptions about Ripple’s operational stance. This could also encourage a steadier regulatory environment for other digital asset ventures.

How does this development affect future crypto legal challenges?

This outcome may set a precedent, prompting clearer legal interpretations in crypto disputes. A defined resolution could reshape judicial reviews and strategies for regulators and digital asset firms in future challenges.