The long-running legal battle between Ripple and the SEC may finally be reaching its end—but not in the way many expected. While both sides have fought for years, a recent discussion among legal experts suggests that a quiet settlement may already be in place, keeping the details hidden from public view.
Is Ripple’s Case Secretly Settled
The lawsuit, which has dragged on for years, saw a major ruling last August when Judge Analisa Torres fined Ripple $125 million and restricted its XRP sales to institutional investors.
However, the SEC was not satisfied with the ruling and filed an appeal, claiming that XRP’s retail sales should also be considered unregistered securities. Ripple quickly responded with its own cross-appeal, leading to even more delays.
But recent events suggest that the SEC may be shifting its approach. Since former SEC Chair Gary Gensler stepped down, the agency has backed away from enforcing harsh penalties on crypto firms.
Cases against major platforms like Uniswap and Robinhood Crypto have quietly disappeared. This change has given Ripple an opportunity to argue that if the SEC isn’t consistent with its enforcement, then it shouldn’t be penalized either.
Could a Private Settlement Be the Answer?
Legal expert Jeremy Hogan believes there is a strong possibility that Ripple and the SEC have already settled behind closed doors. If true, this would mean no more court battles, no more filings, just a quiet agreement that allows both parties to move on.
However, a private settlement could come with challenges. For Ripple, the main concern is lifting the injunction that prevents it from selling XRP to institutional investors.
The SEC, on the other hand, would need to back away from enforcing this restriction, which could be difficult. Another option would be for Ripple to ask the court to change the judgment, but that carries the risk of rejection.
What Experts Are Saying
According to Yassin Mobarak, founder of Dizer Capital, the $125 million fine isn’t a major issue for Ripple. He believes the company can pay for it easily.
The bigger problem is the restriction on institutional sales, which is what Ripple is likely trying to negotiate. If a private settlement has already taken place, the details may remain hidden for years.
