A settlement between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) may be finalized by April, according to a lawyer representing the blockchain company, Jeremy Hogan. The protracted legal battle over whether the XRP token constitutes an unregistered security could soon come to an end, with both sides reportedly in talks to resolve the case.
The case is a focal point for the entire cryptocurrency sector, as it could set a precedent for how the United States regulate digital assets. Therefore, the outcome of the case will have significant implications for the future of Ripple, the cryptocurrency industry, and broader regulatory efforts in the U.S.
🚨BREAKING: Pro #XRP lawyer Jeremy Hogan says: “The ongoing case might settle in April or May.” #XRP pic.twitter.com/5HVbNJcXBc
— JackTheRippler ©️ (@RippleXrpie) January 5, 2025
Legal Dispute Focuses on XRP’s Status as a Security
The legal dispute centers on whether XRP, the third-largest cryptocurrency by market capitalization, should be classified as a security under U.S. law. The SEC argues that Ripple conducted an unregistered securities offering by selling XRP. In its defense, the cross-border payment firm maintains that XRP functions as a digital currency and does not fall under the SEC’s regulatory jurisdiction.
The SEC filed the lawsuit in December 2020, alleging that Ripple raised massive funds through the sale of XRP without registering it as a security. Ripple has consistently denied the allegations, asserting that XRP operates like Bitcoin or Ethereum, which the SEC does not classify as securities. The case has implications not only for Ripple but also for its native XRP token and the broader cryptocurrency industry.
Notably, after the court case broke out, XRP suffered price stagnancy for many years. The token missed out on the 2021 rally that saw most other cryptocurrencies establish their peak prices. However, following Trump’s victory in the United States November elections, XRP recovered significantly, breaking above $1 for the first time in over two years.
At the time of press, XRP is trading at about $2.42, reflecting a 1.1% upswing in the past 24 hours. It boasts $138.78 billion in market capitalization and about $4.64 billion in 24-hour trading volume.
