The long-running legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) may be on the verge of resolution, according to Fox Business journalist Eleanor Terrett. Citing two well-placed sources, Terrett reports that the case is in the process of wrapping up, with the delay stemming from Ripple’s legal team negotiating more favorable terms regarding the August 2023 district court ruling.
Ripple’s Battle Against Admission of Wrongdoing
At the center of these negotiations is Ripple’s resistance to the $125 million fine and the permanent injunction preventing institutional XRP sales. Judge Analisa Torres’ ruling last year determined that programmatic XRP sales did not constitute securities offerings, while institutional sales did—leaving Ripple with partial clarity but also significant restrictions.
According to Terrett, Ripple’s legal team is pushing back against these terms, arguing that accepting them would be tantamount to admitting wrongdoing. The company’s position is reinforced by the fact that the SEC, under its new leadership in 2025, appears to be reassessing its approach to crypto regulation. If the agency is now backing away from its previous enforcement-heavy strategy, Ripple questions why it should still be penalized for operating in what was previously an unclear regulatory environment.
🚨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.
My understanding is that the delay in reaching an agreement is due to Ripple's legal team negotiating more favorable terms regarding the August…
— Eleanor Terrett (@EleanorTerrett) March 12, 2025
Shifting SEC Leadership and Its Impact on the Case
Terrett highlights an important shift within the SEC that may be influencing these negotiations. Under its previous leadership, the agency pursued aggressive legal action against multiple crypto firms, asserting that most digital assets were unregistered securities. However, with a change in leadership and evolving regulatory perspectives, many of these cases are either being dropped, reassessed, or settled under less severe terms.
Ripple’s legal team is reportedly leveraging this shift, arguing that if other companies are being offered regulatory leniency under the new administration, why should Ripple’s penalties remain in place? If the SEC itself is uncertain about whether wrongdoing occurred, Ripple sees no reason to accept a fine and an injunction that could limit its business operations indefinitely.
Why This Settlement Is Taking Longer Than Others
While other crypto-related enforcement cases have been resolved relatively quickly, the Ripple case is unique in both its scale and industry-wide significance. As Terrett points out, there is no clear precedent for modifying or reversing an enforcement action of this magnitude—especially one that has already seen a ruling in court.
With Ripple’s case setting a benchmark for digital asset regulation, both parties are likely treading carefully to avoid unintended consequences. The outcome of this case could shape how cryptocurrencies are classified and regulated in the United States for years to come, making it a pivotal moment for the industry.
What Comes Next for Ripple and XRP?
As negotiations continue, Terrett’s sources indicate that a resolution is expected soon. If Ripple successfully secures more favorable terms—such as a reduction in fines or the removal of the institutional sales injunction—it would represent a major victory for the company and the XRP community. Such an outcome could also restore institutional confidence in XRP, paving the way for greater adoption.
However, if Ripple is unable to negotiate better terms and is forced to accept the ruling as it stands, it could face long-term operational challenges while still benefiting from the partial clarity provided by Torres’ decision. Either way, the resolution of this case will be a defining moment in crypto legal history, influencing future regulatory decisions and shaping the broader digital asset landscape.
For now, the crypto world awaits the final chapter of SEC vs. Ripple, with Terrett’s latest scoop suggesting that the finish line is finally in sight.
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