The prolonged lawsuit between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs may soon come to an end, according to two reliable sources cited by journalist Eleanor Terrett. However, the process still faces hurdles as Ripple’s legal team seeks to negotiate more favorable terms.
Ripple is challenging the $125 million penalty from the August 2024 ruling, arguing that if the SEC—under new leadership—is now easing enforcement actions against other crypto firms due to regulatory uncertainty, then Ripple should not face heavy fines either. The lawsuit has dragged on due to the lack of clear legal precedents in the crypto industry.
This case is considered one of the most significant legal disputes between the SEC and crypto companies.
Since 2020, the SEC has accused Ripple of selling XRP without proper registration, amounting to $1.3 billion in total sales. In August 2024, the court ruled that Ripple must pay a $125 million fine for selling XRP to institutional investors. However, Ripple secured a major victory as XRP was not classified as a security in public trading.
Despite this ruling, the SEC filed an appeal, prolonging the case. However, recent developments suggest that the long-running SEC vs. Ripple lawsuit may finally be nearing its conclusion, drawing significant attention from the crypto community.