Ripple and SEC have jointly approached the court with a motion to release $125 million held in an escrow account for legal costs.
Joint Motion by Ripple and SEC
On November 15, 2023, Ripple and the SEC filed a joint motion requesting the release of $125 million from an escrow account to cover legal costs. According to the letter submitted, $50 million will be transferred to the SEC as a civil penalty against Ripple, with the remaining $75 million returned to Ripple pending court approval.
Court Ruling and Implications
In July 2023, Judge Analisa Torres ruled that secondary sales of the XRP token are not securities, marking a partial win for Ripple and the crypto industry. However, the court also recognized that sales of XRP to investors during funding rounds did constitute securities sales.
Significance of Ripple Case for Crypto Industry
The resolution of the Ripple case represents a symbolic victory for an industry that has largely achieved legitimacy in the U.S. The conclusion of this litigation will preserve the resources of the Second Circuit, avoiding the need to resolve further appeals.
The conclusion of the Ripple case and the joint motion with the SEC open new avenues for crypto regulatory frameworks, underscoring the importance of legal foundations in the realm of digital assets.
