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Ripple’s long-running legal dispute with the SEC could be approaching its final chapter, with reports indicating that negotiations are now focused on overturning a critical ruling tied to a $125 million penalty.
As the case nears a potential resolution, speculation grows that both parties may be edging toward a settlement, marking a significant turning point in the XRP saga.
The U.S. Securities and Exchange Commission (SEC) lawsuit against Ripple over XRP sales appears to be approaching its conclusion, according to recent reports. The case, which has spanned multiple years, has been a focal point in the cryptocurrency industry. On March 12, Fox Business journalist Eleanor Terrett reported on social media platform X that two sources indicated the case was in its final stages and could soon be resolved.
Terrett stated that the delay in reaching an agreement stemmed from Ripple’s legal team negotiating more favorable terms regarding the August district court ruling, which imposed a $125 million fine and included a permanent injunction preventing the company from selling XRP to institutional investors. Sources reportedly revealed that Ripple’s argument centered on the SEC’s evolving stance on crypto regulation. With new leadership reconsidering enforcement actions against crypto firms, Ripple questioned why it should still face penalties. Terrett explained that accepting the court ruling as it stood would imply that Ripple was admitting to wrongdoing, despite the SEC itself appearing uncertain about whether any violation had occurred.
Earlier this month, lawyer James Murphy, known as Metalawman on X, also suggested that the delay might be due to Ripple’s efforts to negotiate vacating Judge Torres’ decision rather than resistance from the SEC. While the ruling was largely favorable to XRP holders, he noted that findings of securities law violations and the injunction could restrict Ripple’s future business plans, including an exempt securities offering or an IPO. Murphy speculated that the SEC might have agreed to a settlement where both parties dropped their appeals in exchange for Ripple paying the $125 million fine, but Ripple could be pushing for better terms.
The SEC initiated the lawsuit against Ripple in December 2020, accusing the company of conducting an unregistered securities offering through XRP sales. The case has since become a landmark legal battle in U.S. cryptocurrency regulation. However, the SEC itself is undergoing significant changes, with several crypto-related enforcement cases—such as those against Coinbase, Kraken, and Robinhood—being dropped. Following the departure of former SEC Chair Gary Gensler, the agency has reportedly shifted its stance on cryptocurrency and formed a task force to reassess its regulatory approach. This shift may have played a role in the ongoing negotiations between Ripple and the SEC as they work toward a final resolution.
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