The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has been going on for years, but there are signs that it may finally come to an end.
Reports say the Ripple vs. SEC case is almost over, but not because of a final court decision. Instead, both sides are still negotiating, and Ripple is waiting for better terms before agreeing to a deal.
In August 2023, Judge Analisa Torres ruled that Ripple must pay a $125 million fine and is banned from selling XRP to institutional investors.
However, the SEC was unhappy with the ruling and appealed, arguing that XRP’s retail sales should also be considered unregistered securities. Ripple responded with a cross-appeal, prolonging the legal fight.
Eleanor Terrett reports that the case is in its final stages, but negotiations continue as Ripple challenges the penalties. The company argues that if the SEC’s new leadership is backing off enforcement against other crypto firms, it shouldn’t be forced to accept past rulings. Since there is no clear precedent for this situation, the case is taking longer to resolve.
The SEC has also relaxed its crackdown on crypto companies in recent times. Once former SEC Chairman Gary Gensler left, Uniswap and Robinhood Crypto cases were quietly dismissed. Ripple is using this shift to argue that it should not be penalized while other firms are given leniency.
Legal expert Jeremy Hogan believes a private settlement is the most likely outcome. This means no more court battles—just a quiet agreement between Ripple and the SEC. The details of such a deal might never be disclosed to the public.
If Ripple and the SEC resolve, Ripple could be free to operate without further punishment. However, this would be subject to whether the SEC is willing to lift its injunction against Ripple. The other alternative is for the case to be sent back to the trial court for a revised ruling, but this would be risky because the judge might decline.
If Ripple and the SEC settle, the details might stay secret. This has happened before, like in Taco Bell’s 2000s lawsuit, where the terms were hidden for years.
