Ripple Labs Reaches Settlement with SEC
Ripple Labs has finalized a settlement with the United States Securities and Exchange Commission (SEC), ending a lawsuit that has been ongoing since 2020. According to Stuart Alderoty, Ripple’s chief legal officer, via Twitter, the company agreed to pay a significantly reduced fine of $50 million, a considerable reduction from the $125 million initially proposed by the SEC.
The Final Crossing of the T’s and Dotting of the I’s
Last week, the SEC agreed to drop its appeal without conditions. @Ripple has now agreed to withdraw its cross-appeal. The SEC will retain $50 million of the $125 million fine (already in an interest-bearing cash escrow), with the balance returned to Ripple. The agency will also ask the Court to lift the standard preliminary injunction that was previously imposed at the SEC’s request. All subject to a Commission vote, preparation of final documents, and usual court proceedings.
Revocation of the Injunction
The settlement requires Judge Analisa Torres to revoke the injunction that required Ripple to register its future sales of securities, a condition that marked the lawsuit. With this move, both parties demonstrate a willingness to drop the previously sought remedies, seeking a definitive resolution of the dispute.
Details of the Case
The case in question centered on allegations that Ripple conducted unregistered securities offerings through XRP sales, sparking a legal battle that lasted nearly four years. With the conclusion of this settlement, one of the most closely followed and discussed cases in the cryptocurrency space is approaching its conclusion, signaling potential regulatory relief and progress for Ripple.
Future Implications
Furthermore, the positive outcome paves the way for the creation of XRP ETFs, as several issuers have already expressed interest by submitting applications in recent months. This move comes at a time when the SEC, under the new administration, appears to be backing away from several enforcement actions against cryptocurrency entities, aligning itself with a more conciliatory stance.
Current Market Status
At the time of publication, the price of XRP was quoted at US$2.45, up 1% in the last 24 hours.