Ripple Labs has concluded its years-long legal battle with the U.S. Securities and Exchange Commission (SEC), agreeing to pay a substantially reduced fine.
History of the Lawsuit
The lawsuit between Ripple and the SEC has been ongoing for several years. The main issue was the SEC's allegations that XRP is an unregistered security. A previous ruling ordered Ripple to pay a $125 million fine.
Settlement Terms
Under the new settlement terms, the SEC will retain $50 million of the originally ordered $125 million that was held in escrow. Ripple has agreed to drop its cross-appeal.
Market Reaction to the News
Despite the positive legal outcome, the price of XRP showed little to no upward movement, remaining essentially unchanged.
The Ripple-SEC legal battle has finally concluded, setting important precedents for the cryptocurrency market. However, the market's response to the settlement was more muted than one might have expected.
