SEC Moves to Close Lawsuit Against Ripple Courtesy Settlement Talks

The case against Ripple, the payments company accused of trading XRP as an unregistered security, is allegedly nearing completion by the U.S. Securities and Exchange Commission (SEC). In 2024, Ripple achieved partial win in the legal struggle that started in 2020, but it still had to pay a $125 million fine.

Although discussions have caused a delay, Eleanor Terrett, a reporter for Fox Business, disclosed that both parties are striving to bring the matter to a close. The fine and its legal ramifications are the main topics of discussion.

Ripple Seeks Better Terms in Settlement

Terrett, citing unnamed sources, stated that Ripple’s legal team is pushing for more favorable terms. She explained, “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 centers on the SEC’s shifting stance on crypto regulation. If new leadership at the SEC is reconsidering enforcement actions against crypto firms, Ripple questions why it should still face penalties.

Terrett added, “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.”