The post XRP Lawsuit News: Ripple Reaches Final Settlement with SEC, Pays $50M Instead of $125M appeared first on Coinpedia Fintech News
Ripple has agreed to settle its ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC), dropping its appeal and agreeing to pay $50 million of the originally imposed $125 million fine. This settlement marks a likely end to the long legal battle that has been ongoing since the SEC sued Ripple in 2020 over the sale of XRP tokens, which it claimed were unregistered securities.
As part of the deal, the SEC has also requested that Judge Analisa Torres lift the “obey the law” injunction that had been placed on Ripple, which was part of the earlier ruling. With this agreement, Ripple will recover $75 million from escrow, while the SEC will retain $50 million.
Ripple’s Chief Legal Officer, Stuart Alderoty, referred to this as “the final crossing of t’s and dotting of i’s,” signaling that this is likely the last update on the case. He also hinted that once the SEC Commission votes and the necessary court documentation is filed, the case will be officially closed.
Ripple CEO Brad Garlinghouse had previously announced that the SEC would not continue its appeal. Last week, the SEC agreed to drop its own appeal without any conditions, paving the way for Ripple to follow suit. The long-standing case has been a major point of contention in the cryptocurrency world, with Ripple consistently arguing that the SEC’s actions were more about intimidation than protecting investors.
Garlinghouse opened up about the financial harm caused by the lawsuit, saying that the legal proceedings had potentially wiped out up to $15 billion in value for XRP holders. He also criticized SEC Chairman Gary Gensler’s aggressive approach to regulating the crypto industry.
With both parties now agreeing to end their appeals, the SEC vs. Ripple case is set to be concluded, closing another chapter in the ongoing debate over how cryptocurrencies should be regulated in the United States.