The long-term legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) might be over. Fox Business writer Eleanor Terrett claims that the two sides have been in continuous negotiations, aiming at a possible settlement in the near future.
Background of the SEC vs Ripple Case
On December 22, 2020, the SEC declared that two officials of Ripple Labs Inc. and the company itself had been targets of an action. According to the lawsuit, they had raised more than $1.3 billion using an unregistered digital asset securities offering—XRP—since 2013.
Unlike several recently dropped cases, including Coinbase, the Ripple lawsuit centers on an existing order from District Judge Analisa Torres. It requires Ripple to pay a $125 million penalty, and the same judge will retain jurisdiction over the case until August 7, 2025, to ensure compliance.
April 16, 2025, is the next significant deadline in the case where the company is scheduled to file its appellate brief.
Recent SEC Decisions and Potential Outcome
Recently, the SEC halted two crypto appeals and issued five enforcement “crypto pauses” in just a few days. This shift in approach, coupled with a changed SEC leadership, has increased optimism in the crypto community.
Former SEC official John Reed Stark referred to the agency’s latest measures as a “never-before-seen kind of radical turnabout in its enforcement policy.”
The sharp change in course could indicate a more general change in U.S. government strategy toward the bitcoin sector.
A positive outcome for Ripple would raise XRP’s price and entice institutional investors, who have been wary of regulatory uncertainty, to show fresh interest.
The outcome of this case could also mean a big change in how US regulators and the cryptocurrency sector work together. This could lead to better rules and a more cooperative approach to monitoring the situation.
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