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- XRP gained nearly 3% as reports surfaced about Ripple and the SEC nearing a settlement in their long-running lawsuit.
- Ripple argues that the SEC’s changing stance on crypto regulation should impact penalties from the previous court ruling.
- The SEC is shifting its crypto policy with new leadership, halting lawsuits, and focusing on clearer rules for the industry.
The US Securities and Exchange Commission is close to settling its long-running lawsuit against Ripple. The case has been ongoing since 2020 and is now in its final stages. According to Eleanor Terrett, the settlement terms are still being discussed.
🚨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.
— Eleanor Terrett (@EleanorTerrett) March 12, 2025
My understanding is that the delay in reaching an agreement is due to Ripple's legal team negotiating more favorable terms regarding the August…
XRP saw a price increase of nearly 3% following reports about the lawsuit’s resolution. As of press time, XRP is trading at $2.23, and the market cap stands at $129.86 billion.
Key Issues in Settlement Discussions
Negotiations focus on Ripple’s push for better terms in light of a previous court ruling. Judge Analisa Torres of the Southern District of New York ruled that institutional sales of XRP were investment contracts. Ripple argues that penalties should be reconsidered if the SEC’s leadership is shifting its regulatory approach.
Ripple maintains that accepting the court ruling could imply an admission of wrongdoing. The SEC’s changing stance on crypto regulation complicates the situation. Ripple believes that if the regulator is reassessing past enforcement actions, then it should not be held to outdated penalties.
Legal Background and Financial Penalty
The court ruled that XRP sales to retail investors were not unregistered securities offerings. However, institutional sales violated securities laws. As a result, the court imposed a $125 million penalty on Ripple.
The ruling also included a permanent injunction against selling XRP to institutional investors. Both parties were preparing to appeal before reports of a possible settlement emerged.
SEC’s Recent Actions in Crypto Regulation
In early March, the SEC halted 11 lawsuits and investigations against cryptocurrency firms. The cases included high-profile firms such as Binance, Coinbase, Kraken, and Consensys. The regulator is shifting its approach to establish clearer rules for the crypto industry.
The new SEC administration includes pro-crypto officials. Commissioner Mark Uyeda serves as acting chair while Commissioner Hester Peirce leads the Crypto Task Force. This task force represents a shift in regulatory oversight. It moves away from the enforcement-heavy policies under former SEC Chair Gary Gensler. The outcome of the Ripple case could influence future regulatory actions in the crypto sector.