• XRP gained nearly 3% as reports surfaced about Ripple and the SEC nearing a settlement in their long-running lawsuit.
• Ripple argues that the SEC’s changing stance on crypto regulation should impact penalties from the previous court ruling.
• The SEC is shifting its crypto policy with new leadership, halting lawsuits, and focusing on clearer rules for the industry.  

The US Securities and Exchange Commission is close to settling its long-running lawsuit against Ripple. The case has been ongoing since 2020 and is now in its final stages. According to Eleanor Terrett, the settlement terms are still being discussed.

XRP saw a price increase of nearly 3% following reports about the lawsuit’s resolution. As of press time, XRP is trading at $2.23, and the market cap stands at $129.86 billion.

Key Issues in Settlement Discussions

Negotiations focus on Ripple’s push for better terms in light of a previous court ruling. Judge Analisa Torres of the Southern District of New York ruled that institutional sales of XRP were investment contracts. Ripple argues that penalties should be reconsidered if the SEC’s leadership is shifting its regulatory approach.

Ripple maintains that accepting the court ruling could imply an admission of wrongdoing. The SEC’s changing stance on crypto regulation complicates the situation. Ripple believes that if the regulator is reassessing past enforcement actions, then it should not be held to outdated penalties.

Legal Background and Financial Penalty

The court ruled that XRP sales to retail investors were not unregistered securities offerings. However, institutional sales violated securities laws. As a result, the court imposed a $125 million penalty on Ripple. 

The ruling also included a permanent injunction against selling XRP to institutional investors. Both parties were preparing to appeal before reports of a possible settlement emerged.

SEC’s Recent Actions in Crypto Regulation

In early March, the SEC halted 11 lawsuits and investigations against cryptocurrency firms. The cases included high-profile firms such as Binance, Coinbase, Kraken, and Consensys. The regulator is shifting its approach to establish clearer rules for the crypto industry.  

The new SEC administration includes pro-crypto officials. Commissioner Mark Uyeda serves as acting chair while Commissioner Hester Peirce leads the Crypto Task Force. This task force represents a shift in regulatory oversight. It moves away from the enforcement-heavy policies under former SEC Chair Gary Gensler. The outcome of the Ripple case could influence future regulatory actions in the crypto sector.

Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0

PRC Comment Policy

Your comments MUST BE constructive with vivid and clear suggestion relating to the post.

Your comments MUST NOT be less than 5 words.

Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.

Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.

Constructive REPLY to comments is allowed