Ripple’s legal battle with the SEC nears a resolution, potentially reclassifying XRP as a commodity. Sources indicate fines from Ripple could be reduced significantly.
According to a March 17 post by Andrew, known as AP_Abacus on X, two SEC sources suggested that XRP might be considered for serious commodity classification, possibly altering the fines imposed on Ripple in late 2024.
> “Technically there would be no fine,” asserted Gruber Amps, “If terms are renegotiated, and the other dropped cases considered as precedent, Ripple can fully argue for a complete removal of the fine…”
Andrew brought attention to the SEC’s new leadership, which he says is aware of the case’s significance to the digital currency industry’s regulatory landscape.
Court Injunction and Ripple Negotiations
Andrew’s remarks followed a report from FOX News on March 12, noting that Ripple’s legal team was seeking more favorable terms, causing delays in negotiations. That report indicated that Ripple was contesting a $125 million fine stemming from a ruling made by Judge Analisa Torres in August 2023.
Ripple allegedly feels optimistic about its plea against the fines, bolstered by the SEC’s recent reversals on enforcement actions against other crypto firms. “Accepting the Torres ruling as it stands would mean that Ripple is essentially admitting to wrongdoing…” Eleanor Terret stated.
Ripple is also contesting a permanent injunction on selling XRP to institutional investors. A commenter highlighted that renegotiating terms could lead to avoiding any fine entirely, arguing that payment implies guilt.
SEC’s Appeal and Community Perspectives
On January 15, the SEC appealed Judge Torres’ ruling, which determined XRP as an investment contract for sales to institutional investors but not for retail sales, marking a partial victory for Ripple.
Community members observed that the ruling confirmed secondary market sales of XRP were not subject to securities regulations. Attorney Bill Morgan noted the possible commodity status for XRP but insisted that resolving the injunction is critical for Ripple to continue operating effectively in the US market.
Potential for Settlement
Pro-XRP lawyer Jeremy Hogan expressed interest in Terrett’s comment that the case is nearing its conclusion. He speculated that Ripple and the SEC might be negotiating a private settlement agreement that could eliminate the need for further court proceedings.
Hogan described a scenario where the SEC and Ripple settle privately, possibly forgoing the appeal and enforcing the injunction. He acknowledged the SEC might negotiate a way for Ripple to register sales to institutional investors without overtly disregarding the court’s ruling.
Judge Torres had ruled in favor of Ripple regarding disgorgement, noting no monetary harm to institutional investors and issued an injunction barring Ripple from violating securities laws but not entirely prohibiting institutional XRP sales.
Hogan concluded that bringing the case back to trial could allow for amending the judgment if necessary, referencing a past case where a consent judgment was approved despite initial concerns about leniency.
“You still get a free shot at it…” Hogan quoted, suggesting options would take longer to explore.
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