In a major development for the cryptocurrency industry, Fox Business journalist Eleanor Terrett has revealed that the long-running SEC vs. Ripple lawsuit could be nearing its conclusion through an unprecedented settlement approach. This news comes as previous reports indicated potential breakthrough negotiations between the SEC and Ripple.
Breaking: SEC and Ripple Near Agreement
According to well-placed sources, negotiations between the SEC and Ripple are intensifying, with the primary focus on modifying the terms of the August district court ruling that imposed a $125 million fine and restricted XRP sales to institutional investors. The delay in finalizing the agreement stems from Ripple’s legal team pushing for more favorable conditions, particularly given the SEC’s apparent shift in crypto enforcement strategy.
The Simple Solution That Could End It All
Pro-XRP attorney Fred Rispoli has outlined two straightforward paths to resolve the dispute:
- Motion to Vacate: The SEC and Ripple could jointly file a motion to vacate the judgment – considered the cleanest solution
- Non-Enforcement Agreement: The SEC could draft an agreement pledging not to enforce the existing ruling
Legal Precedent Supports Settlement Path
Rispoli points to the significant SEC v. Citigroup Global Markets case (2012) as precedent, where courts demonstrated substantial deference to SEC settlement agreements. This historical context suggests that Judge Torres would likely approve a negotiated resolution between the parties.
Market Impact and Future Implications
The potential settlement has significant implications for both XRP and the broader crypto market:
- XRP price stability at $2.21 despite ongoing negotiations
- Potential precedent for other crypto firms facing SEC enforcement
- Reduced regulatory uncertainty in the crypto space
Community Concerns and Safeguards
While optimism surrounds the potential settlement, some community members express concerns about future SEC leadership potentially reversing course. However, Rispoli suggests that a properly structured agreement could protect against such scenarios, though noting that a hostile regulatory environment would affect the entire crypto industry, not just Ripple.
Looking Ahead: Settlement Timeline
While no specific timeline has been provided, the increasing pace of negotiations suggests a resolution could be reached in the coming weeks. The outcome of this case could set important precedents for how the SEC approaches crypto regulation and settlements in the future.
Source: Bitcoinist