According to several sources, the SEC is preparing to drop its case against Ripple. Previously, there was speculation that the Commission caused the delays, but it may be a negotiating tactic from Ripple.
In August 2024, a judge ruled that Ripple pay a $125 million fine and receive a permanent ban from selling XRP to institutional investors. With Gensler out of the picture, the SEC may agree to annul these penalties.
Is the SEC v Ripple Case Nearing its End?
The SEC v Ripple case is a pivotal legal battle for the crypto industry and arguably the Commission’s most important enforcement action under Gary Gensler.
Since Trump’s inauguration, the SEC has been dropping several lawsuits and investigations, but there haven’t been many updates about this one. However, that could all be changing:
“Two well-placed sources tell me that the SEC 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 district court ruling,” Eleanor Terrett claimed over social media.
In August 2024, a federal judge tried to resolve the suit, ordering Ripple to pay $125 million to the SEC. The firm was also forbidden from selling XRP to institutional investors.
Essentially, Ripple’s lawyers have been trying to get some or all of these penalties removed. Dropping the suit would be a huge win, but the SEC may be amenable to this argument.
“Although there is no formal reason requiring it, it is reasonable to speculate that the SEC v. Ripple case is resolved–or at least something significant happens–before Ripple’s filing deadline of April 16, 2025,” wrote crypto litigator Fred Rispoli.
The SEC removed the Ripple suit from its website in January, but there haven’t been many updates since. This has fueled a lot of speculation as to whether the Commission was deliberately stalling. The SEC apparently used this tactic on a few altcoin ETF applications just yesterday.
Since this news broke, the price of XRP has responded somewhat favorably. The asset’s price has been fluctuating wildly today, but it’s only gone up since these rumors first circulated. Hopefully, they will help create some bullish momentum for the future.
Ultimately, however, there’s no rush on a resolution. The SEC stalled a few other suits before dismissing them, but the Ripple suit has a later deadline. Ripple will need to submit an appellate brief by April 16.
If it isn’t dropped first, this could have a pivotal impact on the case. XRP community may anticipate bullish news in the future, but the gains likely won’t be immediate.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
