The SEC and Ripple are asking a judge to finally settle their long-running lawsuit over XRP. They’ve jointly requested a ruling that would effectively end the case.
A Renewed Plea for Settlement
This isn’t the first time they’ve tried this. A similar request was denied earlier because they didn’t provide enough justification. This new request, however, argues that exceptional circumstances now exist to warrant a change. These circumstances include:
- Efficiency: Settling the case saves everyone time and resources.
- Changing Priorities: The SEC’s approach to crypto enforcement has shifted.
- A Better Deal: Ripple will pay $50 million to the SEC, and get back about $75 million plus interest from an escrow account. The injunction against Ripple would also be lifted.
The Background: A Long and Winding Road
The lawsuit started in December 2020. A key ruling in July 2023 partially sided with both the SEC and Ripple. After some back-and-forth, a $125 million penalty was imposed on Ripple, and appeals were filed. These appeals were paused to allow for a potential settlement. The current request is the latest attempt to finalize this settlement.
The Arguments: Why This Time Is Different
The SEC and Ripple argue that this settlement aligns with the SEC’s updated approach to crypto regulation under its new Crypto Task Force. They also emphasize that the core ruling on XRP sales remains unchanged, only the penalty and injunction are being adjusted. They’re citing legal precedents that support modifying judgments to facilitate settlements and save court time.
What Happens Next?
The judge will decide if the reasons given are strong enough to justify altering the original ruling. If she agrees, the case will be sent back to the appeals court for a final amended judgment, and both sides will drop their appeals. If she disagrees, the appeals process will continue, prolonging the legal battle. The outcome significantly impacts Ripple’s future and the fate of the $75 million in escrow. At the time of writing, XRP was trading at $2.11.
