The case of the SEC vs. Ripple is reportedly nearing its end.
According to journalist Eleanor Terrett, Ripple's lawyers are negotiating a more favorable deal than the $125 million fine and the injunction on institutional XRP sales imposed in August.
Ripple claims that even if the SEC is wiping the books clean on past enforcement actions, it should not be punished or forced to concede violation of the law. Resolution is taking longer without a clear precedent for such a case.
"The argument, I’m told, is that if the new SEC leadership is wiping the enforcement slate clean for all previously-targeted crypto firms because it believes regulatory clarity will resolve the underlying issue, why should Ripple still be penalized? Accepting the Torres ruling as it stands would mean that Ripple is essentially agreeing to admit to wrongdoing — but now the SEC itself is seemingly unsure whether any wrongdoing occurred," Terett wrote on X.
The SEC brought the lawsuit against Ripple in December 2020, alleging that Ripple's sales of XRP were unregistered securities offerings. Ripple has pushed back, arguing that the asset XRP should not be regulated as a security and accusing the SEC of inconsistent regulation in the crypto space.
In August 2023, a court ruled that XRP sales to retail investors did not qualify as securities but that sales to institutional investors violated securities laws, resulting in a $125 million fine.