The protracted legal battle between blockchain payments firm Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC) is reportedly approaching a resolution. Reports indicate that negotiations have intensified, with both sides working to settle the case that has dragged on since December 2020.
Reasons for Ripple v SEC Lawsuit Settlement Delays
American Journalist Eleanor Terrett disclosed on X that the settlement is taking longer because of Ripple Labs’ legal team. Sources close to the negotiation said the firm is pushing for better terms than the August 2024 District Court ruling.
For context, this ruling imposed a $125 million fine on Ripple Labs for violating Federal Securities Laws. It also included a permanent injunction preventing the firm from selling XRP to institutional investors.
Notably, Ripple Labs litigation officers argue that the previous penalties may no longer be justified given the SEC’s new perspective on digital assets regulations under Chairman Mark Uyeda’s leadership.
Similarly, the attorneys further claimed that Ripple Labs’ acceptance of the ruling would only mean one thing: an admission of wrongdoing. Meanwhile, the SEC is still uncertain regarding the applicability of existing regulations to Ripple’s operations. Recall that the SEC challenged the XRP ruling in January that the coin is not a securities ruling.
It is important to add that this current talk of ligation dismissal is not unique to Ripple alone. This event is happening as digital assets regulations in the United States are being redefined.
Ripple Lawsuit Settlement: Potential Implications
If both parties settle, it could have profound implications for Ripple Labs and the broader cryptocurrency industry. For example, it may set regulatory precedence, influencing how digital assets are categorized and regulated in the future.
Additionally, the SEC’s dismissal of the lawsuit could restore confidence among investors and market participants. It could possibly stabilize and strengthen XRP market value and encourage institutional adoption.
An update on the Ripple versus SEC lawsuit could also fuel the XRP price rally. In earlier XRP price analysis, there are projections the coin could soar considerably if the settlement is announced
US SEC and Resolved Crypto Lawsuits
Notably, under the new leadership of acting Chairman Mark Uyeda, the SEC has dismissed the Coinbase lawsuit. Other exchanges, such as Kraken, Uniswap, and Robinhood, have also benefitted from the same freedom.
Likewise, the commission has formed a Crypto Task Force dedicated to helping develop a comprehensive and clear regulatory framework for crypto assets.
Additionally, the White House recently hosted a cryptocurrency summit shortly after President Trump announced the establishment of a strategic Bitcoin reserve. The overall outlook is likely to help shift the market sentiment in the coming weeks.
Godfrey Benjamin
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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