- Ripple disputes $125 million fine, seeking favorable terms amid SEC’s regulatory shift.
- SEC withdrawing lawsuits signals a possible change in crypto regulations under new leadership.
- Ripple’s legal team aims to resolve the injunction and appeal Judge Torres’ ruling.
FOX Business journalist Eleanor Terrett reports that the legal battle between Ripple Labs and the U.S. SEC is nearing a resolution. Settlement talks are underway, following the August district court ruling – a partial victory for Ripple. But sources reveal there still remains a sticking point: the $125 million fine.
The major hurdle, according to insiders, is Ripple’s objection to the $125 million fine imposed by Judge Analisa Torres in July 2023. While significantly less than the SEC’s original $2 billion demand, Ripple’s legal team is fighting for better terms. They argue that the fine is unjustified, particularly given the SEC’s evolving stance under new leadership.
Essentially, Ripple is arguing that it shouldn’t be punished for actions taken during a period of regulatory murkiness, especially if the SEC is now softening its approach to crypto regulations.
So now the ongoing discussions center on whether Ripple will pay the fine and whether it will be bound by a long-term ruling preventing the sale of XRP to institutional investors. This last point is crucial for XRP’s future.
SEC’s Shifting Sands on Crypto
Ripple’s position gains weight considering the larger shifts in the regulatory landscape for digital assets. The SEC has dropped several lawsuits against major crypto firms like Coinbase, Gemini, and Kraken.
Related: Ripple vs. SEC: Could XRP’s Legal Battle End with Leadership Changes?
These moves hint at a possible revision of the SEC’s approach to the crypto industry under its new leadership. Ripple believes that if other companies are being offered a clean slate, they should not be singled out for past actions under what they consider to be an unclear regulatory framework.
Will Ripple and the SEC Reach a Deal?
Despite the ongoing settlement talks, the case remains unresolved. While other crypto-related cases, such as those involving Coinbase and Binance, have seen progress or temporary pauses, the Ripple-SEC dispute is still at an impasse.
Related: SEC Drops Multiple Lawsuits and Investigations Against Crypto Firms—Here’s the List
Legal experts, including James Murphy, suggest the delay could stem from Ripple’s efforts to settle the appeal of Judge Torres’ ruling. This claim suggests that Ripple’s legal team is aiming to overturn the ban and limit the impact of the findings of securities law violations. The outcome of these negotiations could have major implications for XRP’s price and its future role in the crypto market.
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