Ripple Labs and the U.S. Securities and Exchange Commission have reached a preliminary agreement that could officially end one of the crypto world's most prominent legal battles. This dispute began with a lawsuit in 2020.
Background of the Legal Dispute
The lawsuit against Ripple was filed in December 2020. The SEC alleged the company used XRP as an unregistered security to raise funds. In August 2024, a federal court partially sided with the SEC, imposing a $125 million penalty on Ripple.
Terms of the Agreement
According to the terms of the agreement, the SEC will return $75 million out of the $125 million fine to Ripple. The SEC also plans to lift the standard injunction restricting Ripple's operations.
Market Reaction and Next Steps
Following the announcement, XRP briefly rose by 1.5%, reaching $2.47 before pulling back slightly, mirroring broader market trends. The deal awaits final sign-off from SEC commissioners and court approval.
This tentative agreement marks a significant step towards closing the long-standing legal battle between Ripple and the SEC. With the final approvals expected, it could lead to a more stable position for the company in the cryptocurrency market.
