The legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs has officially concluded, marking the end of a nearly five-year dispute.
Financial Terms of the Settlement
The SEC and Ripple jointly filed to dismiss their appeals in the U.S. Court of Appeals for the Second Circuit. Under the settlement, Ripple will pay $50 million, with $75 million of escrowed funds being returned to the company. XRP's programmatic sales for retail customers remain classified as non-securities.
Overview of the SEC vs. Ripple Case
The SEC's lawsuit, filed in December 2020, alleged that Ripple raised $1.3 billion through unregistered securities sales of XRP. Ripple refuted these claims, arguing that XRP is not a security. In July 2023, a split decision in court recognized that institutional sales met legal thresholds while programmatic sales did not fall under this category.
Market Impact of the Resolution
Following the announcement, XRP rose by 12%, with a 24-hour trading volume reaching $9.54 billion, indicating a nearly 140% increase from the previous day. This surge reflects renewed market interest in the token and coincides with a regulatory shift that may impact future enforcement actions.
The resolution of the SEC vs. Ripple Labs lawsuit serves as a significant milestone for the cryptocurrency industry and hints at potential regulatory changes that could affect future cases.
