In a possible turning point for the XRP lawsuit, Fox Business journalist Eleanor Terrett reported on Wednesday that the US Securities and Exchange Commission (SEC) and Ripple might soon reach an agreement. “Two well-placed sources tell me that the SEC vs. Ripple case […] could be over soon,” Terrett revealed, adding that “the delay in reaching an agreement is due to Ripple’s legal team negotiating more favorable terms regarding the August district court ruling.”
That ruling hit Ripple with a $125 million fine and prohibited it from selling XRP to institutional investors. Terrett’s sources suggest Ripple’s team is pushing back, insisting that if the SEC’s new leadership aims to “wipe the enforcement slate clean” for previously-targeted crypto firms, Ripple should not be held to a judgment that may no longer reflect the agency’s stance. Terrett noted “there’s no real playbook for this,” emphasizing how this unique scenario may be “taking longer to resolve than the rest.”
An Easy Path To End The XRP Lawsuit
Pro-XRP attorney Fred Rispoli contends via X that resolving the dispute over the ruling should be relatively straightforward—if the SEC is willing. “I just don’t see this being the big issue some are making it out to be,” he remarked, calling the process unorthodox but not overly complicated.
According to Rispoli, there are multiple ways the agency and Ripple could neutralize Judge Torres’ order. He stressed: “The SEC and Ripple can file a motion to vacate the judgment–the cleanest way to dispose of it. Telling the the Court ‘in consideration for potentially losing our entire crypto jurisdiction if we lose the appeal, we’re agreeing to vacate judgment in exchange for Ripple dropping its appeal.’ Torres is not going to second guess this.”
He also noted that even without formally vacating the order, the SEC could draft an agreement stating it will not enforce the ruling for the same consideration. “The SEC doesn’t even have to vacate the order. It can simply draft an agreement with Ripple that it won’t enforce the judgment for the same consideration set out,” Rispoli said.
Alluding to the agency’s broad discretion under its Enforcement Manual, which routinely recommends settlement over uncertain litigation, Rispoli added: “The SEC Enforcement Manual has all kinds of general, vague language that recommends cooperation and settlement over the uncertainties of litigation so the authority for this behavior is covered […] but even if it weren’t, who cares? This isn’t a good thing, but the SEC (and most other .gov agencies) has proven it does what it wants, when it wants, without regard to due process. Here, it works in justice’s favor for once.”
Despite Rispoli’s optimism, some community members worry about a potential resurgence of stricter enforcement under different leadership down the line. One user on social media platform X posed the question: “What if, say, in 4 years, we are back to a Gensler-style SEC and the SEC then tries to enforce the injunction?”
Rispoli responded: “That’s the ONLY fear … But it could be wiped out with a superseding agreement between SEC and Ripple. And if your scenario happens, crypto already lost and a lot more folks than just Ripple would be worried.”
Can A Court’s Decision Really Be Overridden?
A second point of contention involves whether or not the SEC can effectively negate a district court’s decision through a negotiated settlement. Critics argue that administrative agencies should not be able to override final rulings.
Rispoli, however, referenced a notable precedent involving Citigroup. He pointed to SEC v. Citigroup Global Markets, Inc., 673 F.3d 158 (2d Cir. 2012), in which an appellate court reversed a district judge’s refusal to approve an SEC settlement.
“It’s happened before,” he noted, highlighting that courts often give significant deference to consent decrees and settlement agreements proposed by the SEC and its enforcement targets. In that case, the Second Circuit concluded the district court erred by not deferring to the SEC’s judgment in accepting a settlement.
At press time, XRP traded at $2.21.
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