According to Fox Business journalist Eleanor Terrett, there may be a potential breakthrough in the XRP lawsuit as the US Securities and Exchange Commission (SEC) and Ripple are reportedly close to reaching an agreement. Terrett stated that sources have informed her that the SEC vs. Ripple case could be coming to an end soon. The delay in reaching an agreement is attributed to Ripple’s legal team negotiating for more favorable terms following the district court ruling in August.
The ruling imposed a $125 million fine on Ripple and prohibited the company from selling XRP to institutional investors. Ripple’s team is reportedly pushing back against the ruling, arguing that if the SEC’s new leadership is looking to clear the enforcement slate for other targeted crypto firms, Ripple should not be held to a judgment that may no longer align with the agency’s stance.
An Agreement to End the XRP Lawsuit
Pro-XRP attorney Fred Rispoli believes that resolving the dispute over the ruling should be straightforward if the SEC is willing to cooperate. Rispoli suggests that the agency and Ripple could neutralize Judge Torres’ order by filing a motion to vacate the judgment or drafting an agreement stating that the SEC will not enforce the ruling in exchange for Ripple dropping its appeal.
Rispoli also referenced the SEC’s broad discretion under its Enforcement Manual, which recommends settlement over litigation, and expressed optimism that a resolution could be reached. However, some community members are concerned about potential future enforcement under different leadership.
Challenges and Precedents
There is a debate over whether the SEC can override a district court’s decision through a negotiated settlement. Rispoli cited a precedent involving Citigroup to support the idea that courts often defer to consent decrees and settlement agreements proposed by the SEC and its enforcement targets.
At the time of writing, XRP was trading at $2.21.
