Ripple and the U.S. Securities and Exchange Commission (SEC) are continuing their efforts to resolve a lengthy legal dispute by proposing a new settlement.
Updated Settlement Between Ripple and SEC
In a joint court filing, both parties asked the Southern District of New York to approve a revised deal that would lift an injunction against Ripple and split the $125 million penalty — $50 million for the SEC and $75 million for Ripple. They argued this proposal would save time and avoid further appeals, aligning with SEC’s recent decisions in other crypto cases.
History of the Legal Dispute
The legal battle dates back to 2020 when the SEC sued Ripple for raising $1.3 billion through what it claimed were unregistered securities sales. A mixed ruling last year found that Ripple’s programmatic XRP sales did not violate securities laws, but its direct sales to institutional investors did — leading to a $125 million fine for Ripple.
Changes in SEC's Approach to Cryptocurrencies
Since the departure of former SEC Chair Gary Gensler in January, the agency has taken a noticeably different approach to crypto regulation. It has dropped several cases and launched a new task force focused on regulation and policy discussions. Ripple and the SEC mentioned this shift as a key reason for allowing the proposed settlement to proceed.
The revised settlement proposal between Ripple and the SEC offers a potential resolution to the dispute, but the final decision rests with the court, considering previous rulings and the current changes in SEC policy.
