Ripple and the U.S. Securities and Exchange Commission (SEC) have reached a $50 million settlement, which may put an end to their years-long legal conflict regarding the cryptocurrency XRP.
Case Timeline
The case began in December 2020 when the SEC sued Ripple for allegedly selling $1.3 billion worth of unregistered securities through its token XRP. The SEC claimed that XRP was a security in deals with institutional investors. In July 2023, Judge Analisa Torres ruled that Ripple’s institutional XRP sales were unregistered securities offerings, while sales to retail customers did not violate securities law.
Terms of the New Settlement
The settlement allows Ripple to keep $75 million of the previously ordered fine, held in escrow since last year. The SEC will drop its appeal and Ripple will drop its cross-appeal. Ripple will not have to admit liability, and there will be no additional fines or injunctions related to past XRP sales.
Market Impact and Future Regulation
The Ripple-SEC settlement was met with cautious optimism in the crypto markets. XRP rose nearly 9% in 24 hours, reflecting improved investor sentiment. Analysts suggest that this removes a significant regulatory cloud for Ripple and XRP. This case sets a benchmark for how digital assets will be regulated in the future.
The $50 million settlement marks the end of one of the most significant legal battles in the cryptocurrency space. While the regulatory outlook remains uncertain, this case has set boundaries for SEC enforcement, allowing Ripple to resume its business operations.
