According to several sources, the Securities and Exchange Commission (SEC) is preparing to drop its case against Ripple. Previously, there was speculation that the commission was causing the delays, but this may be a negotiating tactic by Ripple.
In August 2024, a judge ruled that Ripple must pay a $125 million fine and receive a permanent ban from selling XRP to institutional investors. With Gensler out of the picture, the SEC may agree to waive these penalties.
Is the SEC case against Ripple nearing its end?
The SEC's case against Ripple is a pivotal legal battle for the cryptocurrency industry and perhaps the Commission's most significant enforcement action under Gary Gensler.
Since Trump's inauguration, the SEC has dropped several lawsuits and investigations, but there have been few updates on the matter. However, that could all change:
In August 2024, a federal judge attempted to resolve the lawsuit, ordering Ripple to pay $125 million to the Securities and Exchange Commission. The company was also barred from selling XRP to institutional investors.
Essentially, Ripple's lawyers were trying to get some or all of these sanctions removed. Dropping the lawsuit would be a major victory, but the SEC may be receptive to this argument.
The SEC removed Ripple's lawsuit from its website in January, but there have been few updates since then. This has sparked much speculation about whether the commission is deliberately delaying the process. The SEC used this tactic on some altcoin ETF applications just yesterday.
Since this news broke, the price of XRP has responded somewhat positively. The asset's price was volatile today, but it has only risen since these rumors began circulating. We hope this will help create some upward momentum for the future.
Ultimately, however, there is no rush to resolve the matter. SEC postponed several other lawsuits before dismissing them, but Ripple's lawsuit has a later deadline. Ripple will need to file an appellate brief by April 16.
If it doesn't drop first, it could have a pivotal impact on the case. The XRP community may expect bullish news in the future, but the gains likely won't be immediate.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may include the author's personal opinions and do not reflect my own. We encourage readers to conduct thorough research before making any investment decisions. I am not responsible for any financial losses.
