Ripple lawsuit nears resolution: XRP may be classified as commodity
Ripple expects a decision in his favor
The Ripple vs. SEC case is nearing resolution, with settlement negotiations focused on penalty reductions and regulatory clarity, potentially setting a major precedent for the crypto industry. According to insiders, penalties may be significantly reduced, and XRP could be classified as a commodity.
Key Takeaways
In a recent report, Fox News journalist Eleanor Terrett mentioned that the Ripple vs. SEC case is nearing its conclusion.
New reports citing SEC insiders suggest that both parties are working on a resolution that would allow the regulator to save face while enabling Ripple to lift the ban on institutional XRP sales.
One possible outcome is a settlement agreement, which could have a significant impact on the crypto market.
A settlement could Be near
A user named Andrew (AP_Abacus) on X reported that two SEC sources suggested XRP could receive "serious commodity consideration" and that the $125 million penalty imposed on Ripple in late 2024 might be "significantly reduced."
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"The new SEC leadership is aware of this case, and how they handle it is a big deal—a precedent," Andrew claimed.
This report surfaced just five days after FOX News correspondent Eleanor Terrett stated that settlement talks had been delayed due to Ripple's legal team pushing for more favorable terms.
Ripple challenges $125M penalty and regulatory ban
According to Terrett, Ripple is contesting the $125 million penalty imposed after an August 2023 district court ruling. She also noted that Ripple is optimistic about its appeal against the fine, as the SEC has been softening enforcement actions against crypto firms since the Trump administration took office.
"Accepting the ruling in its current form would essentially mean Ripple is admitting wrongdoing—but now even the SEC itself seems uncertain if there was any wrongdoing," Terrett commented.
Ripple is also fighting against a permanent ban that prevents it from selling XRP to institutional investors. In response to Andrew’s report, attorney Bill Morgan said that while XRP’s potential commodity status and penalty reduction seem plausible, the real issue is the sales restriction.
"Something has to change regarding the ban," Morgan stated, emphasizing that lifting institutional sales restrictions is crucial for Ripple to operate freely in the U.S. market.
Pro-XRP lawyer Jeremy Hogan pointed to one key phrase in Terrett’s report: "The case is in its final stages and could soon be over."
For Hogan, this suggests that Ripple and the SEC may be negotiating a private settlement, avoiding further litigation. He outlined a scenario where both parties agree to settle privately, withdraw the appeal, and keep the settlement terms out of the district court for ratification.
However, this would require the SEC to forgo enforcing a sales ban, which could be a significant concession.
"I find it hard to believe the SEC would agree to THIS," Hogan noted. "But perhaps they could allow Ripple to formally register institutional XRP sales, giving Ripple what it needs while preventing the SEC from openly disregarding the court’s ruling."
XRP price dynamics for 24 hours. Source: CoinMarketCap
At the time of writing, XRP was trading at $2.33, up 1.7% in the past 24 hours. While the institutional trading ban is still in place, the crypto community remains hopeful for a favorable resolution, which could further drive XRP’s price.
As we wrote, XRP price had a five-day winning streak but came to a halt as the price failed to break above the 50-day EMA resistance at $2.45. Despite the strong upside move, RSI remained in bearish territory, indicating limited bullish momentum. This led to a pullback, with XRP finding support at $2.26.
