Breaking: SEC and Ripple Legal Battle to End as Parties Draws Agreement

After a four-year legal battle, Ripple Labs’ dispute with the US Securities and Exchange Commission (SEC) appears close to resolution. Recent reports indicate the case is nearing its conclusion, a potentially pivotal moment for XRP and the US cryptocurrency market.

Fox Business reporter Eleanor Terrett reported the case is “in the process of wrapping up,” following appeals and cross-appeals related to August 2024’s $125 million judgment.

Notably, this follows a trend of the SEC withdrawing enforcement actions against other cryptocurrency companies, including Coinbase, Consensys, and Kraken, since the beginning of the Trump administration.

SEC to End Legal Battles with Ripple

Ripple’s top lawyer, Stuart Alderoty, said the SEC case is further along than others recently dropped, because of the court decision and appeals. He’s hopeful for a deal with the SEC, but if not, they’ll appeal. He explained they might both drop appeals, keeping the $125 million court ruling. Or, if they disagree, they might work together to change the ruling.

The SEC sued Ripple in December 2020, saying Ripple used XRP illegally. Judge Analisa Torres partly ruled for Ripple, saying XRP wasn’t an illegal security when sold on exchanges. This was a big win for the crypto world. However, the SEC’s appeals show the rules are still unclear.

The case is delayed because Ripple is trying to get better terms in a settlement deal. They’re using the August court decision, which included a fine and a ban on selling XRP to big investors, to their advantage. Ripple argues that if the SEC is dropping cases against other crypto companies under the new administration, it’s unfair to keep punishing them.

Moreover, the agency isn’t sure what happened, making things worse. Accepting the judge’s ruling would mean admitting Ripple did something wrong, which goes against what the SEC says it wants to do: clear rules and enforcement.

Trump Administration Drives Legal Leniency

President Trump’s administration changed how the SEC handled cryptocurrency firms. The SEC dropped some lawsuits, showing a move to help the crypto industry grow. XRP’s price is going up, reflecting this better outlook.

This happened around the same time Ripple gave a lot of money to the Trump administration. Ripple gave money to political groups and Trump’s inauguration. While Ripple’s top lawyer says the SEC changed its mind because of Acting Chair Mark Uyeda’s views, the timing of the donations has raised questions about possible conflicts of interest.