Michaela
Ripple Labs has reached a settlement with the SEC, bringing an end to their prolonged legal battle. As part of the agreement, Ripple will pay a $50 million penalty and withdraw its cross-appeal. The resolution marks a key moment in the broader regulatory discussion surrounding digital assets.
Chief Legal Officer Stuart Alderoty shared the news with the community in a post on X, finalizing the terms of its legal dispute. As part of the agreement, the U.S. Securities and Exchange Commission (SEC) will retain $50 million of the original $125 million penalty, with the remaining amount 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,” Alderoty wrote.
On March 19, Ripple CEO Brad Garlinghouse confirmed that the regulator dropped its appeal. “This is it — the moment we’ve been waiting for,” Garlinghouse wrote in an X post. “The SEC will drop its appeal — a resounding victory for Ripple, for crypto, every way you look at it. The future is bright. Let’s build,” he added.
The settlement with the SEC marks the conclusion of one of the most closely watched legal battles in the cryptocurrency industry. The dispute began in December 2020, when the SEC filed a lawsuit against Ripple, alleging that the company had conducted an unregistered securities offering by selling its XRP token.
Ripple countered the claims, arguing that XRP should not be classified as a security and that the SEC’s approach to regulation lacked clarity.
Over the course of the case, both parties secured partial victories. In a landmark ruling in July 2023, a federal judge determined that XRP was not a security when sold on exchanges to retail investors, though institutional sales of the token did violate securities laws.
The decision was seen as a win for the company and the broader crypto industry, reinforcing the argument that certain digital assets should not fall under traditional securities regulations.
The settlement with the SEC could have lasting implications for how regulators approach digital assets, shaping the legal landscape for cryptocurrencies in the U.S.
Read More
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- Ripple ‘Pushed’ for Solana’s Inclusion in Crypto Reserve – Reports
- SEC Appeals Ripple Ruling, Seeks XRP Classified as Unregistered Security
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
