SEC vs. Ripple Nears Final Phase: Will $125M Fine Be Dropped?
The long-running case between Ripple Labs and the US SEC might be coming to an end.
According to Fox Business journalist Eleanor Terrett, two sources close to the matter have confirmed that the case is being resolved.
The lawsuit has been filed in December 2020 and has been one of the biggest legal battles in the crypto space, shaping the regulatory landscape for digital assets. Now as the SEC goes through leadership changes and reconsiders its approach to crypto enforcement, Ripple is pushing for a deal that wipes out the penalties from previous rulings.
🔥🚨 BREAKING: The Ripple vs. SEC Battle Is Finally Coming to an End – Here’s What It Means for XRP!
After years of legal warfare, the Ripple vs. SEC lawsuit is reportedly in its final stages. Sources confirm the case is “wrapping up”—a decision could drop any moment now.…
— All Things XRP (@XRP_investing) March 12, 2025
Why Ripple Is Fighting to Vacate the Ruling
A key point in the negotiations is the ruling by Judge Analisa Torres that Ripple violated securities laws in certain XRP sales. While the decision was seen as a partial win for Ripple—since programmatic sales of XRP were not deemed securities—the SEC was seeking a $125 million fine.
Terrett reported that Ripple is asking to vacate the ruling, arguing that if the SEC is reversing enforcement actions against other crypto companies, it would be unfair to penalize Ripple under the previous regulatory stance.
Ripple is saying that accepting the ruling as is would mean admitting wrongdoing, despite regulatory uncertainty at the time of XRP sales.
The SEC’s new leadership is re-evaluating its crypto enforcement, which adds to Ripple’s argument.
Analysts think the delay is because Ripple is trying to get better settlement terms.
Will Ripple Avoid a Fine and Future Restrictions?
Legal expert James Murphy, aka Metalawman, has said that Ripple’s negotiations might be to remove findings of securities violations. He noted that while the ruling benefited XRP holders, it could still restrict Ripple from doing future offerings, including an IPO.
🚨 SEC reportedly preparing to drop Ripple lawsuit, XRP jumps 5%.
The SEC is reportedly wrapping up its long-running tussle with Ripple, the mastermind behind $XRP. Just like that, rumors sparked a 5% price increase, bouncing from $2.14 to $2.24 in just under an hour. As of… pic.twitter.com/J1bxZIfsSx
— Blockman (@blockmandev) March 12, 2025
A potential settlement scenario could involve:
Dropping both parties’ appeals to avoid prolonged litigation.
Eliminating the $125 million penalty in light of the SEC’s shifting enforcement approach.
Ensuring Ripple can operate without future regulatory constraints on XRP sales.
A New Era for Crypto Regulation?
The SEC has dropped cases against big exchanges like Coinbase, Kraken, and Robinhood in recent weeks since Gary Gensler left as SEC Chair. The new leadership has created a crypto task force to review regulation, which will likely impact how the Ripple case is resolved.
As the negotiations conclude, the outcome of this lawsuit will be big for the entire crypto space. A win for Ripple would bring more institutions into digital assets and clarify the SEC’s future role in crypto.
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