Ripple, SEC Near Settlement in $125M XRP Dispute

The legal dispute between the U.S. Securities and Exchange Commission (SEC) and Ripple appears to be nearing its conclusion. According to reports, Ripple has been engaged in negotiations to secure more favorable terms, while the SEC seeks to reset its relationship with the cryptocurrency industry.

Fox News reporter Eleanor Terrett, citing anonymous sources, revealed that both the SEC and Ripple are working towards resolving their legal dispute. The primary point of contention revolves around the $125 million fine imposed by the August district court ruling, which also included a permanent injunction preventing Ripple from selling XRP to institutional investors.

The legal battle between the SEC and Ripple has been a focal point in the cryptocurrency world. The SEC alleges that Ripple sold unlicensed securities during the sale of XRP tokens. In August 2024, the Federal Court ordered Ripple to pay a $125 million fee and banned it from selling XRP tokens to institutional investors, significantly disrupting Ripple's business model.

Terrett noted that the delay in reaching an agreement is due to Ripple's legal team negotiating more favorable terms regarding the August district court ruling. The argument presented is that if the new SEC leadership is wiping the enforcement slate clean for all previously-targeted crypto firms, why should Ripple still be penalized?

Gary Gensler, the former SEC head, disputed the August 2024 ruling, which reduced the fee from $1.95 billion to $125 million. Many analysts believe that a settlement is underway, and given the new administration, the case may be dropped entirely. The delay in finalizing the settlement comes as Ripple's legal team negotiates further reductions in Judge Torres' ruling.

The Ripple team initially saw Torres’ ruling as a success because the court ruled that the automated sales of tokens to retail traders did not constitute a securities transaction regarding the XRP sale. The SEC, however, is reversing its ‘war on crypto,’ canceling numerous legal battles with other crypto businesses. Ripple investors have been patiently awaiting the benefits of these new changes.

Mark Uyeda, the new SEC chairman, has shifted the department’s focus, reversing previous cases and changing the entire perspective of operations. Ripple Labs, particularly its legal team, views this change as a potential indication of the complete removal of the legal case.

Ripple’s legal team sees any compromise with the SEC, such as making a settlement, as an admission of guilt on their part. The SEC itself disagreed with Torres’ ruling because it disputed the findings that XRP sales did not constitute a securities transaction. The SEC, under previous leadership, challenged the court ruling in January and would prefer the original fee of around $1.95 billion.