SEC Prepares to Conclude Ripple Lawsuit: Implications for XRP

Recent reports indicate that the SEC may soon drop its case against Ripple, a development that could significantly influence the cryptocurrency market.

In a ruling back in August 2024, a federal judge imposed a $125 million penalty on Ripple while prohibiting the firm from selling XRP to institutional investors. With Gary Gensler no longer at the helm of the SEC, there are growing expectations that these sanctions might be rescinded.

Is the SEC versus Ripple Case Approaching Resolution?

The SEC vs Ripple case stands as one of the most critical legal challenges in the cryptocurrency sector, marking the SEC's significant enforcement action during Gensler's tenure.

While the SEC has recently dropped multiple investigations, updates on the Ripple case have been scarce. However, this might be changing, as noted by Eleanor Terrett on social media:

“Two credible sources suggest that the SEC vs. Ripple case is nearing completion. The hit in negotiations can be attributed to Ripple's legal team seeking more favorable terms regarding the district court's ruling from August.”

Following the August ruling, Ripple's legal counsel has been pushing to have these penalties reduced or outright removed. If the SEC chooses to drop the lawsuit, it would mark a substantial victory for Ripple and the broader cryptocurrency space.

“While there’s no strict requirement, many speculate that a resolution, or at the very least a major development, may occur before Ripple's appellate deadline on April 16, 2025,” commented crypto litigator Fred Rispoli.

Notably, the SEC removed the Ripple lawsuit from its website in January, sparking speculation about possible delays in the case's proceedings. Recently, the SEC has utilized similar lengthy tactics concerning various altcoin ETF applications.

In light of this news, the price of XRP has shown a positive reaction. Although experiencing volatility, the asset has seen upward movement since rumors of a possible dismissal emerged, potentially signaling bullish trends ahead.

While the urgency for a quick resolution is low, it’s important to note that Ripple must submit its appellate brief by April 16, meaning that if the lawsuit is not withdrawn beforehand, it could significantly affect the case's outcome. The XRP community waits in anticipation for potentially good news, although immediate gains may be unlikely.