Ripple’s SEC case has two expected results, with a major impact on the cryptography

Ripple’s long-term legal battle with the Securities and Exchange Commission (SEC) is reportedly approaching its conclusion, sources within the agency cited by members of the XRP community called Andrew. Insiders argue that negotiations, including five years of lawsuits, can reclassify XRP as a product.

Two SEC sources said X-handle AP_ABACUS can be XRP, according to a March 17 post by Andrew receive The “serious product considerations” and the fines imposed on ripples in late 2024 may “reduce a significant decrease.”

Technically there is no fine. If terms are renegotiated and other dropped cases are considered precedent, Ripple can fully assert the complete removal of the fine.

– Gruber Amps (@gruberamps) March 17, 2025

He also said the SEC’s new leadership is “aware” how important cases are to the broader digital currency industry from a regulatory law perspective.

Ripple vs. SEC Court Injunction Files Still Active

Andrew’s statement comes just five days after Fox News correspondent Eleanor Terrett reported that negotiations were delayed as Ripple’s legal team seeks more favorable terms of settlement.

Terret I said The ripple appears to challenge the $125 million fine imposed after the August 2023 ruling by Analisa Torres. She also said Ripple is optimistic about her plea that she will not pay the fine since the SEC has reversed enforcement measures against other crypto companies since the Trump administration took office.

“Accepting Torres’ ruling means Ripple essentially agrees to admit fraud, but now it is apparently unclear whether the fraud occurred by the SEC itself.“Fear commented.

The company is also reportedly fighting a permanent injunction that would prevent the sale of XRP to institutional investors. A commenter in Andrew’s post noted that if Ripple successfully renegotiates its terms, it could avoid paying the fine in full.

“Paying the fine was a guilty agreement, and this “guilt” in the same parallel case was rejectedThey said.

The appeal of the SEC is not feasible, the community says

On January 15th, the SEC formally appealed the judge’s decision in July 2023. This found that while XRP is considered an investment contract when it is sold to institutional investors, it does not meet that classification when it is sold to retail investors.

Members of the XRP community felt that the ruling was a partial victory for Ripple as they confirmed that XRP’s secondary market sales were not subject to securities regulations.

In a repost of Andrew’s rumored report, Attorney Bill Morgan said the XRP product status and fine reductions are plausible, but the main challenge lies in the injunction.

“There’s something needs to happen with regard to the injunction,” he said. I wrote itargues that in order for Ripple to actually remain more open in the US market, it must resolve agency sales restrictions.

Lawyer Hogan sees multiple ways to create a “settlement”

March 13th thread Jeremy Hogan, a professional XRP lawyer featured in X, said he was particularly intrigued by one phrase from Terrett’s report.

For Hogan, this meant that Ripple and the SEC could be working on a private settlement agreement that would deny the need for other judicial proceedings.

he Discussed A scenario in which the SEC and Ripple personally resolve, agree to dismiss the appeal, and not to return the terms of the settlement to the court for ratification. The approach would require the SEC to refrain from enforcing the injunction, according to the lawyers.

“It’s hard to believe the SEC will agree to that, but it’s possible they agree to something more oblique (for example) such as providing Ripple a way to actually register institutional investors with sales of XRP. The SEC doesn’t blatantly snap the court order, but Ripple can get what it needs,” Hogan speculated.

In her ruling, Judge Torres rejected the SEC’s request for disgust and found that institutional investors were not suffering financial harm. She also issued an injunction prohibiting Ripple from violating securities laws, but refused to impose a blanket ban on all institutional XRP sales.

Hogan Discussed To allow the judge to amend the verdict, bringing the case back to court could be Ripple’s best option. He cited the 2010 SEC v. Bank of America. There, Judge Rakoff initially approved the consent ruling despite his belief that the bank’s terms of settlement were too generous.

“So what happens if the court refuses to amend the judgment? You are still in the same position and still can enter your personal settlement agreement. You get a free shot with it – and that’s a rare thing in life. But it will take more than a few days,” he concluded.