Former Fox News reporter Eleanor Terrett reported on Wednesday, citing two informed sources, that the lawsuit between the U.S. Securities and Exchange Commission (SEC) and blockchain development company Ripple is nearing its conclusion and may end soon.
It is understood that the delay in reaching an agreement between the two parties is due to Ripple’s legal team still negotiating the district court’s ruling from August to secure more favorable terms. This ruling imposed a $125 million fine on Ripple and included a permanent injunction prohibiting the company from selling its token XRP to institutional investors.
According to informed sources, Ripple’s argument is that if the new SEC leadership intends to withdraw enforcement actions against all previously targeted cryptocurrency companies, because they believe regulatory clarity can address fundamental issues, then why should Ripple still be penalized? Accepting Judge Torres’s original ruling would essentially mean Ripple agrees to acknowledge wrongdoing, but now the SEC itself seems uncertain whether any violations occurred.
Ripple’s General Counsel Stuart Alderoty stated in a recent interview with Cointelegraph that the SEC’s civil lawsuit against Ripple has progressed more than many cases that were dismissed after Trump’s recent inauguration and the former SEC’s ### resignation. When discussing the possibility of the SEC withdrawing the lawsuit, Alderoty remarked: