The United States Securities and Exchange Commission (SEC) has moved closer to ending its prolonged legal battle against Ripple, according to Fox Business reporter Eleanor Terrett in a March 12 X post.
Negotiations have reportedly stalled due to Ripple’s legal team seeking a more favorable outcome concerning a July 2023 ruling by District Court Judge Analisa Torres, which required the company to pay a $125 million fine.
According to Terrett’s post on Wednesday, two sources familiar with the matter claim the SEC is considering ending its legal dispute with Ripple once final terms are agreed upon.
“XRP’s status as a non-security is the law of the land today – and that does not change even in the face of this misguided – and infuriating – appeal,” Garlinghouse said in a statement on X shortly following the appeal.
The ruling was viewed as a partial win for Ripple, as the imposed fine was substantially lower than the nearly $2 billion originally sought by the SEC.
During Gensler’s tenure, the agency pursued multiple lawsuits against major crypto firms, including Kraken, Coinbase, and Consensys.
News of the potential deal comes amid broader regulatory shifts in the SEC’s approach to the blockchain industry following the resignation of former chair Gary Gensler.
Former U.S. President Donald Trump has voiced support for cryptocurrency regulations but has received mixed reactions from the crypto community regarding his stance.
If the SEC settles with Ripple, the company would be among a growing list of crypto firms no longer facing regulatory penalties.
Recently, the SEC has dropped several digital asset-related lawsuits, though cases against major firms like Coinbase and Robinhood remain ongoing.
While some firms have seen enforcement actions dropped, others continue to face legal challenges, highlighting the fragmented approach that has left the industry in limbo.
A resolution to the SEC’s case against Ripple would be a victory for the company, but the broader fight over crypto regulation remains far from settled.
The question now is whether policymakers will seize the moment to provide clarity or leave the industry guessing once again.
A shift away from aggressive lawsuits may signal a more measured strategy, but without a defined regulatory framework, digital asset firms remain in a state of uncertainty.