Ripple and SEC Settle Legal Dispute with $50M Fine

Ripple Labs has agreed to drop its appeal case against the United States Securities and Exchange Commission (SEC). Under the terms of the agreement, the original fine of $125 million imposed on Ripple has been reduced to $50 million.

This settlement follows the SEC’s recent decision to withdraw its appeal in the ongoing legal dispute with the payment network. Consequently, Ripple has also agreed to drop its cross-appeal and pay a reduced fine, with the remaining $75 million being returned to the company.

Sec to Lift Order Compliance 

According to Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, the SEC will request that the court lift the injunction requiring the company to register future securities sales.

“The SEC will keep $50M of the $125M fine (already in an interest-bearing escrow in cash), with the balance returned to Ripple. The agency will also ask the Court to lift the standard injunction that was imposed earlier at the SEC’s request. All subject to Commission vote, drafting of final documents and usual court processes,” he stated.

Ripple achieved this significant milestone after enduring multiple years of intense legal conflicts. In 2020, the SEC alleged that the payment firm conducted unregistered securities offerings through its XRP sales, leading to legal proceedings that lasted a little over four years.

Last week, the regulator dismissed the lawsuit, which many consider a major victory not just for the network but for the whole crypto industry. Ripple’s recent move to drop the case against the SEC marks the conclusion of one of the most closely watched legal cases in crypto history. Additionally, the agency’s decision to settle aligns with recent trends under the current administration, which has seen the agency drop several enforcement actions against crypto companies.

Impact on XRP Market Value 

As remarkable as this development is, XRP has yet to react positively. According to data from CoinGecko, the asset has dropped 0.1% in the last hour and 0.5% in the past 24 hours. It is trading at $2.46 at the time of writing.

Meanwhile, the conclusion of this case will likely impact the cryptocurrency positively, as it might open the door to potential ETFs in the future, considering that several issuers have submitted applications in recent months.