Ripple’s Legal Battle with SEC Nears Settlement

Highlights:

• Ripple vs. the US SEC court case could end soon, Fox Business journalist revealed.
• Terrett said Ripple’s legal team is delaying the process with its push for a favorable outcome.
• Ripple argued that if the SEC cleared other platforms, it should also close investigations into Ripple.

In a March 12 tweet, Fox Business journalist Eleanor Terrett reported that Ripple’s protracted legal battle with the US Securities and Exchange Commission (SEC) might end soon. According to the journalist, the delay in reaching an agreement stems from Ripple’s legal team negotiating for a more favorable outcome for the cross-border firm.

She noted that the August district rulings have remained a major obstacle to reaching an agreement. In August 2024, the court imposed a $125 million fine on Ripple. The court’s verdict also included a permanent injunction that prevents the cross-border firm from selling XRP to institutional investors.

Ripple’s Argument

Ripple questioned why it should face penalties when the SEC’s new leadership has dropped charges against other crypto platforms.

The journalist wrote:

“The argument, I’m told, is that if the new SEC leadership is wiping the enforcement slate clean for all previously targeted crypto firms because it believes regulatory clarity will resolve the underlying issue, why should Ripple still be penalized?”

The payment company also raised concerns about the implications of accepting Judge Torres’ ruling. Ripple argued that accepting the verdict implies it was guilty of all SEC charges.

The Ripple vs. SEC legal dispute dates back to December 2020. The SEC filed a lawsuit against the payment firm, alleging that it raised over $1.3 billion via unregistered digital asset security offerings. Since then, several court battles have failed to settle the matter.

🚨SCOOP: Two well-placed sources tell me that the @SECGov vs. @Ripple case is in the process of wrapping up and could be over soon.

My understanding is that the delay in reaching an agreement is due to Ripple's legal team negotiating more favorable terms regarding the August…

— Eleanor Terrett (@EleanorTerrett) March 12, 2025

Attorney Reacts to Terrett’s Claims, Says He Doesn’t Consider the Delay a Big Issue

Fred Rispoli, a trial lawyer, responded to Terrett’s tweet with his take on the SEC vs. Ripple legal dispute. “I just don’t see this being the big issue some are making it out to be…it’s unorthodox, but not difficult,” he stated. The lawyer also suggested how both parties could reach an agreement even with the earlier court verdicts.

Rispoli argued that the judge can’t enforce her ruling. He added that only the SEC can enforce the decision, but a united agreement could circumvent it. Rispoli also proposed that the SEC and Ripple could file a motion to vacate the judgment. He described this option as the best method to end the legal dispute.

Alternatively, the lawyer said the SEC could agree not to enforce Torres’ ruling while Ripple drops its appeal plans. He added that the SEC Enforcement Manual supports either approach they chose.

I just don't see this being the big issue some are making it out to be…it's unorthodox, but not difficult.

1) Regarding Torres' order, she is not going to enforce it herself. Only the SEC will enforce violations.

2) The SEC and Ripple can file a motion to vacate the… https://t.co/ze433wgfQ8

— Fred Rispoli (@freddyriz) March 12, 2025

Market Observers React to Rispoli Suggestions on Ripple’s Legal Dispute

Rispoli’s tweet attracted significant reactions from crypto enthusiasts. While many people supported his suggestions, they worried about undermining judicial credibility. An X user argued that vacating the ruling suggests the judge was wrong in her initial ruling.

Legally possible? Sure. But the bigger question: What does this do to judicial credibility?

Torres ruled against Ripple, if she vacates it, she’s admitting she was wrong.

Other SEC cases (Terraform, LBRY, Kraken) will challenge their rulings.

Are you downplaying the impact a…

— ĐΛRKHØRSΞ™ (@DarkhorseDNME4) March 12, 2025

Meanwhile, some X users are optimistic the court case could end soon. They believe the new SEC leadership will hasten resolution for both parties. Over the past few weeks, the SEC, under its acting chairman, Mark Uyeda, has closed investigations into several lawsuits targeting several crypto firms. Some cleared crypto platforms include Yuga Labs, Kraken, Robinhood, Cumberland DRW, Uniswap Labs, Gemini, etc.