SEC, Ripple Ink $50M Settlement Agreement, Ask NY Judge for Green Light
Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have finally settled their long-standing legal battle, bringing an end to years of litigation. The settlement, which still needs approval from a judge, includes a $50 million penalty, a reduced amount from the $125 million fine imposed by Judge Analisa Torres last year.
In her 2023 ruling, Judge Torres determined that Ripple had violated securities laws by selling its XRP token to institutional investors. However, she also found that Ripple did not violate securities laws by offering XRP on exchanges for retail customers to purchase. This decision marked a significant development in the case that was originally brought by the SEC in 2020 under former Chair Jay Clayton.
The SEC, led by former Chair Gary Gensler at the time, appealed Judge Torres’ ruling, leading Ripple to file a cross-appeal. Under the terms of the settlement agreement, both parties have agreed to drop their respective cases. This agreement follows Ripple’s announcement in March that a preliminary settlement had been reached with the SEC.
The settlement comes at a time when the SEC is scaling back its crypto-related investigations and litigation. Following the appointment of crypto-friendly Paul Atkins as the new SEC chairman by President Donald Trump, the agency has shifted its stance on crypto regulation.
Upon news of the settlement, XRP experienced a 9% increase in value, continuing a positive trend over the past 24 hours. Ripple has not yet commented on the settlement.
This resolution signifies a turning point in the legal battle between Ripple and the SEC, providing clarity and closure for both parties involved. The crypto community will be closely monitoring the developments following the approval of the settlement by the judge.
