Recent reports indicate that Ripple and the SEC have filed a joint motion to dissolve the injunction and release $125 million held in escrow. This agreement may become the final step in a legal battle that has lasted nearly four years.
Transition to Resolution
The joint motion was filed in the Southern District of New York and seeks Judge Analisa Torres to lift restrictions on institutional XRP sales previously deemed violations of the law. Under the terms of the settlement, Ripple will pay $50 million to the SEC, with the remaining amount returned to the company. This follows months of stalled appeals and behind-the-scenes negotiations.
Regulatory Changes in the Crypto Industry
The SEC originally sought up to $2 billion in penalties, but with new leadership, the agency has agreed to the current terms. Supporting Ripple's view that XRP is not a security, the reduced fine symbolizes a step towards de-escalation of the conflict. With decreased pressure from the SEC, there is hope for a swift resolution of long-standing issues.
Market Reaction and Case Outcomes
After the filing of the joint motion, XRP saw a decline of 5.2%, but analysts view the agreement as an opportunity to remove significant legal uncertainties. "The conclusion of this litigation is a net positive," noted crypto attorney Preston Byrne. Critics argue that mixed signals from regulators may lead to further uncertainty.
Now, all eyes are on Judge Torres, who may deliver a final ruling on the settlement. Her approval is expected to conclude one of the largest enforcement actions in crypto history and could enable Ripple to strengthen its international positions.
