- Ripple Labs settled its long-running lawsuit with the SEC, agreeing to pay a significantly reduced fine
- Ripple drops its cross-appeal, and the SEC will seek to lift a previous injunction
- Despite the positive legal outcome, XRP’s price showed little to nil upward movement
Ripple Labs has reached an agreement with the U.S. Securities and Exchange Commission (SEC) to end their years-long legal fight. The settlement involves Ripple paying a substantially lower fine than earlier mandated.
Ripple’s Chief Legal Officer, Stuart Alderoty, announced the company would not be moving forward with its cross-appeal against the SEC’s August 2024 judgment. That judgment had ordered Ripple to pay $125 million, but under the new settlement terms, the SEC will only retain $50 million of the $125 million that was held in escrow.
What Exactly Does This Settlement Entail?
The remaining $75 million, which has been held in an interest-bearing escrow account, will be returned to Ripple.
The SEC has also agreed to request the court to remove the injunction they had previously sought against the company; this agreement is subject to the usual court processes.
Alderoty clarified in his tweet that this marks what he hopes will be his final update on the Ripple vs. SEC case. He confirmed the SEC had agreed to drop its appeal without any conditions, and Ripple had also consented to the settlement. The next steps involve finalizing the necessary legal paperwork.
Related: Ripple vs. SEC: How One Legal Battle Saved the Entire US Crypto Industry
Did Ripple’s Political Spending Influence the Outcome?
Ripple’s engagement in U.S. politics gained attention during the 2024 election cycle. The company made significant contributions to political action committees, including $25 million to Fairshake PAC, which supported candidates seen as favorable to the crypto industry. Ripple also pledged $5 million in XRP to President Donald Trump’s inauguration fund.
Notably, the SEC’s approach to regulating cryptocurrencies appears to be shifting under the current administration. Acting SEC Chairman Mark T. Uyeda has publicly stated the agency will be moving away from the “regulation-by-enforcement” strategy that characterized the tenure of his predecessor, Gary Gensler.
How Has the XRP Market Reacted to the Settlement News?
Following the announcement of the settlement, XRP experienced some minor fluctuations but ultimately showed little to nil upward movement.
At the time of this report, XRP was trading around $2.44, a modest 1.1% rise over the past 24 hours, according to data from CoinMarketCap. The total market capitalization now at $142.35 billion reflects a 1.11% rise though.
Related: Why XRP Could Target $5-$8: Analyst’s Elliott Wave Theory Explained
Interestingly, the trading volume for XRP over the last 24 hours saw a significant decrease of 14.02%, settling at $2.69 billion. Throughout the day, XRP’s price saw some movement, hitting a high of $2.47 before settling back to the current level.
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