Key Takeaways
- The SEC’s case against Ripple is expected to conclude soon as negotiations continue.
- Ripple’s legal team is seeking changes to a court ruling to avoid a $125 million fine.
The years-long legal battle between the US SEC and Ripple Labs is nearing a conclusion as negotiations continue over terms related to the August district court ruling, FOX Business journalist Eleanor Terrett reported Wednesday, citing two sources familiar with the matter.
SCOOP: Two well-placed sources tell me that the @SECGov vs. @Ripple case is in the process of wrapping up and could be over soon. My understanding is that the delay in reaching an agreement is due to Ripple’s legal team negotiating more favorable terms regarding the August…
The delay in reaching a settlement stems from Ripple’s legal team seeking to modify terms of the ruling, which included a $125 million fine and a permanent injunction preventing Ripple from selling XRP to institutional investors.
Ripple’s attorneys are arguing that if the SEC’s new leadership is clearing enforcement actions against previously-targeted crypto firms based on the premise that regulatory clarity will address underlying issues, Ripple should not face penalties.
Sources indicate that accepting Judge Torres’ ruling as it stands would amount to Ripple acknowledging wrongdoing at a time when the SEC itself appears uncertain about whether violations occurred.
The unique nature of this regulatory scenario has contributed to a longer resolution timeline compared to other crypto-related cases before the SEC.