- XRP outperforms altcoins as reports suggest the SEC lawsuit against Ripple is nearing resolution, potentially ending a pivotal legal battle in the cryptocurrency industry
- Ripple’s legal team negotiates better terms after a $125M fine and injunction, arguing outdated rulings shouldn’t apply under the SEC’s new leadership prioritizing regulatory clarity
- The SEC’s evolving stance on crypto regulation, led by Acting Chair Mark Uyeda, signals a shift toward fostering innovation, dropping cases like Robinhood and Coinbase recently
XRP is outperforming nearly all altcoins on March 12, following reports that the SEC’s ongoing lawsuit against Ripple could be finally coming to a conclusion.
Fox News journalist Eleanor Terrett shared the scoop earlier today on Twitter. On the post, Terret shared that two close sources disclosed that the legal battle is in the process of wrapping up, potentially putting an end to one of the most important legal battles in crypto history.
Ripple’s Push for Fairer Terms Amid Legal Battle
Eleanor Terrett claims that the delay in resolving the SEC lawsuit against Ripple stems from the company’s legal team pushing for more favorable terms regarding the August district court ruling. This ruling imposed a $125 million fine and a permanent injunction preventing Ripple from selling XRP to institutional investors.
Ripple argues that if the SEC’s new leadership is reconsidering enforcement actions against other crypto firms to prioritize regulatory clarity, Ripple should not be penalized under outdated rulings. The lack of precedent for such negotiations is contributing to the extended timeline for resolution.
The SEC lawsuit against Ripple began on December 22, 2020. At the time the U.S. Securities and Exchange Commission (SEC) accused Ripple Labs of conducting an unregistered securities offering by selling XRP.
Back then, the lawsuit kickstarted a longstanding debate regarding the classification of digital assets. While the SEC under Gary Gensler’s rule supported the argument that altcoins like Ethereum and XRP should be classified as security due to the SEC’s argument that altcoins fall more in line with investments, the pro-crypto argument emphasizes that many digital assets function as decentralized currencies or utilities rather than investment contracts.
The SEC’s Changing Approach to Crypto Regulation
Since Acting Chair Mark Uyeda took office earlier this year, the new commission has already shown signs that it would be less strict with the classification of cryptocurrency assets. Only last month, the SEC dropped several investigations or lawsuits like Robinhood and Coinbase, and all of them had a similar argument that these platforms were not engaging in activities that warranted the classification of their digital assets as securities.
This search for more regulatory clarity in the crypto sector has been one of the first measures the new SEC has imposed since January. After setting up a task force to work exclusively to create a clearer regulatory framework for crypto firms, Donald Trump announced during last week’s Crypto Summit that he expects to receive the new framework by August.
If the reports by Eleanor Terret are confirmed, Ripple’s altcoin XRP will most likely react favorably to the news. If you’re looking for a place to trade crypto assets, why not check out our partner WEEX for a 50% deposit bonus?
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