Ripple SEC case nearing conclusion, according to latest reports

Sources indicate that the U.S. Securities and Exchange Commission (SEC) is close to concluding its drawn-out legal battle against Ripple.

On March 12, Eleanor Terrett, a former journalist for FOX Business, revealed that the SEC's case against Ripple Labs, the firm behind the XRP (XRP) cryptocurrency, was "in the process of wrapping up." The SEC initiated legal proceedings against Ripple in 2020, marking the beginning of one of the longest legal battles between a cryptocurrency firm and the agency.

The case has become a milestone in the crypto industry, with the SEC recently closing several investigations and cases, such as those involving Coinbase, Kraken, and Gemini. Legal experts speculate that the SEC may be aiming for a fresh start in cases not connected to fraud.

According to Terrett's sources, the delay in reaching a final agreement between the SEC and Ripple is due to Ripple's legal team's insistence on "favorable terms" regarding the $125 million penalty imposed by the court in August 2024.

Ripple's lawyers argue that if the SEC's new leadership, which took over following Gary Gensler's departure, intends to close all cases, then Ripple should not be subject to penalties.

The ongoing disagreement revolves around the permanent injunction that prevents Ripple from selling its XRP holdings to institutional investors. Ripple's legal team asserts that accepting the Torres ruling as it stands would imply an admission of wrongdoing on Ripple's part.

Earlier this month, pro-crypto attorney James Murphy, also known as MetaLawMan, shared a theory about the cause of the delay in dismissing the Ripple case.

"I have a Theory about the SEC’s unexplained delay in dismissing the @Ripple case. It might not be the SEC. It could be that @Ripple is negotiating hard to get the SEC to agree to vacate some or all of Judge Torres’ decision. The Torres decision was unquestionably GREAT for…" Murphy wrote.

Ripple has consistently maintained its innocence and views the SEC's case as a harmful attack that negatively affected the company, its token, and the overall market. In July 2023, Judge Analisa Torres ruled that XRP was not a security.

Although the token's price surged at the time, it remained limited due to the SEC's appeal. However, in 2024, with Donald Trump's election victory and Gary Gensler's resignation, XRP experienced a parabolic rise as it spearheaded broader market gains.