- Fox Business reporter Eleanor Terrett claims unnamed sources believe the SEC-Ripple case is about to conclude after years of litigation.
- Ripple is reportedly negotiating more favourable terms regarding the US$125 million fine and a permanent injunction preventing XRP sales to institutional investors.
- The SEC is apparently considering how to end the case rather than if it should end it, possibly because the agency has dropped other crypto lawsuits.
- XRP has gained nearly 3% in value amid this news, while Franklin Templeton has announced plans to launch a spot XRP ETF on the Cboe BZX Exchange.
The long-lasting case between the US Securities and Exchange Commission (SEC) and one of the oldest blockchain firms, Ripple Labs, might finally come to an end.
Fox Business reporter Eleanor Terrett took to X to share that unnamed sources believe the case is about to “wrap up”.
As SEC leadership has changed and the new administration wants to renew the relationship with the crypto industry, many lawsuits against the sector have been dropped.
Related: Analysts: Real Reason Why Market Crashed and Why It Doesn’t Matter
So, many XRP enthusiasts have been scratching their heads, wondering why the SEC vs Ripple saga is still ongoing.
SEC Ponders How to Drop Case, Sources Told Fox Business Reporter
According to Terrett, the reason why the case is still pending is…money…and the SEC’s uncertainty.
Essentially, the team at Ripple is trying to get a better deal on an outstanding US$125 million (AU$197.7 million) fine and is also looking at getting an injunction lifted.
The delay in reaching an agreement is due to Ripple’s legal team negotiating more favorable terms regarding the August district court ruling, which imposed a $125M fine on the company and included a permanent injunction preventing the company from selling XRP to institutional investors.
Eleanor Terrett As per Terrett, Ripple argues that because the SEC led others off the hook, it shouldn’t be punished.
If Ripple were to simply pay the fine (which it could easily afford given its large XRP reserves), it “would mean that Ripple is essentially agreeing to admit to wrongdoing”.
Though, Terrett says it seems the SEC isn’t even sure if any wrongdoing happened.
This basically means the SEC is weighing its options on how to end the case, rather than if it should do so.
Although MetaLawMan initially floated this idea, Terrett emphasises that her claims are based on source information, not mere speculation
Can Spot XRP ETF Avoid Fate of ETH ETF Launch?
XRP meanwhile has picked up on the good news, with the coin gaining almost 3% in the past 24 hours. At the time of writing XRP trades hands for US $2.23 (AU$3.52), sitting comfortably in the fourth spot in terms of market cap.
Related: XRP Ledger Recovers from Network Woes as XRP Tumbles Below $2.40
Yesterday, the popular coin also received some good news, with Franklin Templeton announcing plans to launch a spot XRP exchange-traded fund (ETF) on the Cboe BZX Exchange. The SEC previously acknowledged four XRP ETF filings.
Following their ETF approvals, Bitcoin and Ethereum saw large inflows, though it didn’t translate to a price rally.
ETH actually lost 52% of its value over the past year – a fate XRP fans would hope to avoid for their favourite coin.
