Ripple Labs Emerges Triumphant in Ongoing Legal Dispute
The protracted legal confrontation between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) is approaching a conclusion, with Ripple gaining a significant advantage. Recent developments indicate that the SEC will be returning a substantial portion of the $125 million penalty previously paid by Ripple, marking a pivotal moment in this high-profile case.
SEC to Return $75 Million: Details of the Settlement
According to an announcement from Ripple’s Chief Legal Officer Stuart Alderoty on social media, the SEC will retain only $50 million from the total fine, returning the remaining $75 million to Ripple. This proposed settlement is contingent upon approval from both the SEC commissioners and the court, but it signals a positive shift for Ripple in an otherwise tumultuous relationship with regulatory authorities.
Significance of the Judge’s Ruling
This settlement comes on the heels of the SEC’s decision to abandon its appeal against the ruling made by U.S. District Court Judge Analisa Torres earlier this year. Judge Torres determined that Ripple’s programmatic sales of XRP to retail exchanges did not infringe upon federal securities laws, concluding that only Ripple’s institutional sales were in violation. Despite the initial demand for nearly $2 billion in civil penalties, disgorgement, and prejudgment interest, the final fine imposed on Ripple was significantly lower at $125 million.
Ripple’s Cross-Appeal Dropped
As part of the emerging settlement agreement, Ripple has agreed to withdraw its cross-appeal regarding the SEC’s previous appeal. In addition, Alderoty mentioned that the SEC intends to request the court to lift the standard injunction that has been imposed against Ripple, which could further alleviate restrictions on the company.
Market Reaction and XRP Performance
The news of the settlement had an immediate impact on the crypto market, with XRP experiencing a 1.5% increase shortly after the announcement. However, it later moderated, trading around $2.47. Over the past 24 hours, XRP’s performance mirrored that of Bitcoin (BTC) and the broader cryptocurrency market, as reflected in the CoinDesk 20 Index.
Awaiting Official Comments
As of now, a representative from the SEC has not provided any comment regarding the latest developments. Stakeholders in the cryptocurrency community will be closely monitoring the situation as it unfolds, especially given the implications this case holds for the broader regulatory landscape.
— Reporting contributed by Krisztian Sandor.
