Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have filed a motion in court for a partial settlement of their ongoing legal dispute that began in 2020.
Details of the Settlement Agreement Between Ripple and SEC
Under the agreement, the SEC seeks approval to pay $50 million out of the initially proposed $125 million to end the legal dispute. The remaining $75 million will be returned to the company. The motion was submitted to Judge Analisa Torres in the U.S. District Court for the Southern District of New York.
Ripple’s Position and Developments
The case began in December 2020 when the SEC accused Ripple of conducting unregistered securities offerings through XRP token sales. Despite the prolonged legal battles, Ripple has shown financial stability and active growth. Recently, the company acquired brokerage firm Hidden Road for $1.2 billion and was negotiating with Circle regarding a potential $5 billion acquisition.
XRP Market Response to the News
Following the announcement of the joint request for settlement approval, XRP's price jumped more than 10%. At the time of writing, XRP was trading around $2.28, up 7% from the previous 24 hours. Investors anticipate that the resolution of the legal dispute will further contribute to the token's value growth.
The conclusion of the lawsuit and potential approval of the settlement may lead to significant growth in XRP, as both traders and long-term investors react positively.
