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- Ripple’s legal team pushes for better terms as the SEC case nears settlement, delaying the resolution process.
- SEC reconsiders past crypto enforcement actions, raising questions on why Ripple should still face penalties.
- XRP price reacts to case updates, gaining 3.5% as investors await an official resolution.
According to Eleanor Terrett (@EleanorTerrett) the U.S. Securities and Exchange Commission (SEC) stands very close to finalizing its settlement with Ripple. The settlement terms between both parties are being negotiated, which hinders the proceedings.
Ripple Pushes for Better Terms Amid SEC’s Shifting Stance
Ripple’s legal team continues negotiations to receive improved conditions following the August district court decision. Under the terms of this district court ruling, Ripple became obligated to pay $125 million in fines and was restricted from halting all institutional XRP sales permanently.
Ripple contends that because the SEC has dropped penalties against other crypto firms, it should not be subject to penalties. Major firms such as Coinbase and Kraken received dropped cases from the SEC while the SEC discontinued Uniswap Labs and Robinhood Crypto investigations.
United States District Judge Analisa Torres demanded that Ripple Labs pay this financial penalty while imposing XRP selling limitations for institutions in August 2023. XRP sales directed to retail consumers received approval from the court since they did not violate securities legislation. Ripple initiated a counterappeal to dispute specific components of the court ruling, and the SEC continued with their appeal after the original decision.
According to Terrett, Ripple refuses to admit to any wrongdoings by accepting the Torres judgment as it stands. The Securities and Exchange Commission shows signs of wrestling with whether Ripple made any illegal security violations through its operations. It protects the lengthening of the case resolution because parties lack definitive clarity about the XRP situation.
No Clear Precedent for Crypto Enforcement Rollbacks
The absence of defined procedures regarding crypto enforcement rollback delays the resolution process of this case. The outcome differs from that of other companies because Ripple faces a unique situation based on the Torres ruling and its effects on institutional XRP sales.
The primary basis of Ripple’s position arises from the SEC’s changing method of handling regulatory matters. Ripple argues that the company should not face penalties when the SEC drops enforcement actions to create more precise regulations since the current framework now appears questionable.
Implications for the Broader Crypto Market
The court’s final decision about this case will introduce comprehensive changes to crypto regulations worldwide. By achieving favorable settlement terms, Ripple seeks to establish legal practices to determine SEC enforcement actions in future cases.
The latest court reports triggered a 3.5 percent price boost for XRP because of the existing marketplace uncertainties. Numerous investors monitor official statements to learn about the definitive terms that may come out of the settlement.
The SEC has not disclosed the situation formally, but some reports point toward resolving agreements between the two parties. This future decision will establish how the SEC will regulate cryptocurrency enforcement practices. Participants in the market eagerly watch for upcoming developments in the lawsuit to reach its official outcome.
Also Read:Ripple CEO Highlights White House Crypto Summit as Key Turning Point
